Steelcase hopes to double Smith System’s business in five years by plugging the products into its North American dealer network, according to Smith. “As education markets continue to grow, the combination of Steelcase and Smith System will create incredible value for our customers,” Allan Smith, vice president of global marketing at Steelcase, said in a statement. In a filing, Steelcase said the deal, which is expected to close in the second quarter of its current 2019 fiscal year, will be “modestly accretive” to current fiscal year earnings and “more significantly thereafter.” Steelcase said it would fund the transaction with cash on hand and debt through its existing credit facility. The company will continue to operate as an independent subsidiary with its own brand.
Smith System generated roughly $82 million in revenue over the past 12 months, expanding at a compound annual growth rate of 25 percent, according to the filing. of Plano, Texas bolsters its range of solutions in the education market.Īccording to filings with federal securities regulators, Steelcase plans to acquire all the outstanding capital stock of Smith System for about $145 million, with an adjustment for working capital. The Grand Rapids-based Steelcase (NYSE: SCS) said the deal for Smith System Manufacturing Co.
announcing it has signed a definitive agreement to acquire a Texas manufacturer of education furniture.
GRAND RAPIDS - The flurry of deals in the office furniture industry this week continued today with Steelcase Inc.
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