Steelcase to Acquire HALCON, Maker of Finely Crafted Wood Furniture for the Modern Workplace
The expected acquisition will add to the company’s expanding community of brands, providing designers and customers with an extensive range of wood furnishings and fueling the growth of HALCON.
Steelcase Inc. announced May 5 that it 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, offering uncompromising design and master craftsmanship to A+D professionals and customers,” Steelcase said in its announcement.
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. HALCON’s range of sophisticated solutions elevate the worker experience with thoughtful and innovative details.
“At HALCON we combine manufacturing flexibility, craftmanship and exceptional service to solve the unique needs of our clients,” said Ben Conway, president of HALCON. “We’re thrilled to join Steelcase and together expand the reach and impact of our products while remaining committed to our existing customers, distribution channels and workforce.”
Steelcase and its community of brands offer an extensive selection of solutions and services designed to support the way people and organizations want to work today.
“From private office to conference rooms, we were attracted to the HALCON brand for their fine craftsmanship that enables organizations to create signature, custom-designed workplace environments. When matched with our shared commitment to quality, sustainability, and service, HALCON is a natural fit for our community of brands,” said Allan Smith, senior vice president, chief revenue officer of Steelcase. “We expect to drive strong growth by making the HALCON portfolio even more accessible to our customers, A+D professionals and dealers. We believe HALCON’s success is rooted in its commitment to quality and long-term partnership with A+D firms, clients, suppliers, the dealer community and employees, and we expect that to continue.”
The transaction is expected to close during Steelcase’s second quarter 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,” continued Smith.
The expected acquisition builds upon previous acquisitions aimed at growth by delivering a broad portfolio of products, including the acquisitions of Viccarbe, Orangebox, AMQ, and Smith System, supplementing a leading portfolio and offering greater choice and value to Steelcase customers globally. Steelcase has previously announced marketing and distribution relationships with Blu Dot, Bolia, Carl Hansen & Son, EMU, Established & Sons, Extremis, FLOS, Mattiazzi, Microsoft, Mitchell Gold + Bob Williams, Moooi, Nanimarquina, PolyVision, Tom Dixon, and West Elm.
Visit HALCON at www.halconfurniture.com
Visit Steelcase at www.steelcase.com