Stewartville's Halcon purchased for $127.5 million
Steelcase Inc. announced last week that an agreement has been signed to buy Stewartville-based office furniture maker Halcon as a subsidiary.
STEWARTVILLE — A national competitor is paying $127.5 million for Halcon , a high-end Stewartville furniture maker with about 400 employees.
Grand Rapids, Mich.-based Steelcase Inc. announced last week that an agreement has been signed to buy Halcon as a subsidiary. Halcon , which tallied approximately $70 million in revenue in the past year ending in April, has been a Stewartville fixture for 45 years.
It was founded by Peter Conway in 1977. He sold it to Canadian furniture maker Teknion in 1999. However, the family bought Halcon back in 2009 . The company has repeatedly expanded since then and has grown to be one of Stewartville's top employers.
“Halcon products are an excellent complement to Steelcase’s current product portfolio, and joining with Steelcase will strengthen both companies. We are committed to our Stewartville workforce, and they will benefit from the transaction,” Conway said about the deal. “We are well-positioned for growth, and the future is very bright.”
The transaction is expected to close in early June, if the transaction goes as planned. In addition to the purchase price of $127.5 million, the agreement includes “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.”
Halcon sent out a “frequently asked questions” document to employees to explain the acquisition.
“There will be no change in employment with this transition,” according to the FAQ. Work locations and job duties will also remain the same as part of the transition. Employees will also retain the seniority that they have accrued at Halcon.
Employees were told that the Stewartville company will operate as an independent subsidiary under the Steelcase umbrella. Halcon will retain its brand and organizational structure.
“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 Steelcase Chief Revenue Officer Allan Smith about the purchase. “We expect to drive strong growth by making the Halcon portfolio even more accessible to our customers, A+D professionals and dealers.”
As one of the largest office furniture maker in the country, Steelcase has long been a competitor of Halcon. The 110-year-old company posted $2.8 billion in revenue in fiscal 2022 and is estimated to have more than 12,500 employees.
Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to firstname.lastname@example.org or via Twitter to @whereskiger . You can call him at 507-285-7798.