Steelcase Inc. has signed a definitive agreement to acquire HALCON, a Minnesota-based designer and manufacturer of precision-tailored wood furniture for the workplace. This acquisition will complement the current portfolio of Steelcase wood products.
Established in 1977, HALCON is a leader in custom wood and executive-level tables, credenzas, and desks. With a culture of quality and innovation, the company’s portfolio features patented, award-winning furniture collections for today’s private office, open-plan, and collaborative spaces.
The transaction is expected to close during Steelcase’s 2Q of fiscal 2023, subject to regulatory approval and the satisfaction of customary closing conditions. It involves the acquisition of all outstanding equity interests in HALCON for $127.5 million and includes an adjustment for working capital and potential additional consideration of up to $9.5 million payable to the seller over three years based on the achievement of certain performance targets and continued employment of Mr. Conway. Steelcase intends to fund the acquisition using cash on hand and availability under its credit facility, as needed. HALCON posted revenue of approximately $70 million over the trailing twelve months through April 2022, and its backlog of customer orders was approximately $56 million as of the end of April 2022.
“We see many opportunities for growth between the two companies going forward, including geographic expansion, portfolio enhancement and continued revenue gains in HALCON’s existing core markets,” said Allan Smith, senior vice president, chief revenue officer of Steelcase.
