June 29, 2022

Steelcase to Acquire HALCON, Maker of Finely Crafted Wood Furniture for the Modern Workplace

GRAND RAPIDS, Mich., May 05, 2022 (GLOBE NEWSWIRE) — Steelcase Inc. today announced the signing of a definitive agreement to acquire HALCON, a Minnesotadesigner and manufacturer of bespoke wooden furniture for the workplace. This acquisition will complete the current portfolio of Steel case wooden products, offering uncompromising design and masterful craftsmanship to professionals and A+D customers.

Founded in 1977, HALCON is a leader in custom and executive grade wood tables, credenzas and desks. With a culture of quality and innovation, the company’s portfolio includes award-winning, patented furniture collections for today’s private offices, open spaces and collaborative spaces. HALCON’s line of sophisticated solutions enhances the worker experience with thoughtful and innovative details.

“At HALCON, we combine manufacturing flexibility, craftsmanship and exceptional service to meet the unique needs of our customers,” said Ben Conway, president of HALCON. “We are delighted to join Steel case and together expand the reach and impact of our products while remaining committed to our existing customers, distribution channels and workforce.

Steel case and its community of brands offer a wide selection of solutions and services designed to support the way people and organizations want to work today.

“From the private office to conference rooms, we were drawn to the HALCON brand for its fine craftsmanship that enables organizations to create iconic and personalized work environments. When paired with our shared commitment to quality, sustainability and service, HALCON is a natural fit for our community of brands,” said Allan Smithsenior vice president, chief revenue officer Steel case. “We plan to generate strong growth by making the HALCON portfolio even more accessible to our customers, A+D professionals and resellers. We believe that HALCON’s success is rooted in its commitment to quality and its long-term partnership with A+D companies, customers, suppliers, the dealer community and employees, and we hope this will continue.

The transaction is expected to close in Steelcase’s second quarter of fiscal 2023, subject to regulatory approval and satisfaction of customary closing conditions. This involves the acquisition of all outstanding interests in HALCON for $127.5 million and includes an adjustment for working capital and possible additional consideration of up to $9.5 million payable to the seller over three years based on the achievement of certain performance targets and the continued employment of Mr. Conway. Steel case intends to finance the acquisition using cash on hand and the availability of its credit facility, if required. HALCON achieved a turnover of approximately $70 million over the past twelve months up to April 2022and its customer order backlog was approximately $56 million from the end of April 2022.

“We see many growth opportunities between the two companies going forward, including geographic expansion, portfolio enhancement and continued revenue gains in HALCON’s existing core markets,” Smith continued.

The planned acquisition builds on previous acquisitions targeting growth by offering a broad product portfolio, including the acquisitions of Viccarbe, Orangebox, AMQ and Smith System, complementing a leading portfolio and providing greater choice and greater value to Steel case customers globally. Steel case previously announced marketing and distribution relationships with blue dotBolie, Carl Hansen & Sound, EMU, Extremis, FLOS, Mattiazzi, Microsoft, Mitchell Gold + Bob WilliamsMoooi, Nanimarquina, PolyVision, Tom Dixon and West Elm.

Forward-looking statements
From time to time, in written and oral statements, Steel case discusses his expectations regarding future events and his plans and goals for future operations. These forward-looking statements address objectives, intentions and expectations regarding future trends, plans, events, results of operations or financial condition, or state other information relating to Steel casebased on management’s current beliefs and assumptions made by, and information currently available to, Steel case. Forward-looking statements are generally accompanied by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “expect”, “intend”, “could”, ” possible”, “potential”, “predict”, “project”, “target” or other similar words, phrases or expressions. Although Steel case believes that these forward-looking statements are reasonable, they are based on a number of assumptions regarding future conditions, some or all of which may ultimately prove to be incorrect.

Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements and to vary from Steelcase expectations due to factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, government action, natural disasters, pandemics and other force majeure events; cyber attacks; the COVID-19 pandemic and the measures taken by various governments and third parties to combat the pandemic; changes in the legal and regulatory environment; changes in the costs of raw materials, commodities and other inputs; currency fluctuations; changes in customer demand; and other risks and contingencies detailed in Steelcase most recent annual report on Form 10-K and its other filings with the Security and Exchange Commission. Steel case assumes no obligation to update, change or clarify any forward-looking statements, whether as a result of new information, future events or otherwise.

About HALCON
With exceptional innovation, uncompromising design and master craftsmanship, HALCON creates furniture for the modern workplace. The company’s award-winning solutions are manufactured in Stewartville, Minn. with the highest standards of quality and performance. Visit HALCON at www.halconfurniture.com

On Steel case
Organizations around the world trust Steel case to help them create places that help people work better, be inspired and achieve more. The company designs, manufactures and partners with other leading organizations to deliver architectural, furniture and technology solutions – accessible through a network of channels, including more than 800 Steel case dealer locations. Steel case is a global, industry-leading, publicly traded company with 2022 revenue of $2.8 billion. For more information, visit steelcase.com.

Investor contacts:
Mike O’Meara
Investor Relations
(616) 292-9274
Media Contact:Katie PaceCommunication
(312) 350-0502

Source: Steelcase Inc.
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Source: Steelcase Inc.

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