Furniture maker acquires $91M company
A local office furniture manufacturer has acquired a maker of “alternative furniture and settings.”
Grand Rapids-based Steelcase said today it acquired Hengoed, Wales-based Orangebox.
Steelcase said the acquisition gives it an “engine to accelerate innovative product development” in Europe and around the world.
Orangebox posted revenue of about $91 million over the trailing 12 months through August 2018.
“We saw how Orangebox approached the changing landscape at work and their early recognition that more people want alternatives to the traditional desk and to work in a range of postures,” said Allan Smith, VP of global marketing, Steelcase.
“They understood people’s need for balance between privacy at work and the shift toward high-performance teamwork. We are really excited about bringing our portfolios together, and we see the opportunity to more than double the size of Orangebox’s business within five years by leveraging Steelcase’s global scale and distribution.”
Orangebox will operate as an independent subsidiary under its own brand and continue to support its existing dealers, as well as Steelcase dealers.
“Our products enable organizations to work in new, more collaborative ways and can help transform both the culture and efficiency of the organization,” said Mino Vernaschi, managing director, Orangebox. “My dream was for Orangebox to become a worldwide brand. With Steelcase, this will now happen. Our cultures are so similar, and we’re excited about becoming part of the Steelcase family.”
Steelcase acquired all outstanding capital stock of Orangebox for $79 million, less an adjustment for working capital, with an additional $3.9 million payable to one of the sellers over three years, based on the achievement of certain performance obligations.
Steelcase said it funded the transaction by borrowings under its credit facility.
This acquisition follows other recent Steelcase transactions, including its acquisitions of AMQ and Smith System, as well as the marketing and distribution relationships it signed with Blu Dot, Bolia, Extremis, FLOS, Mitchell Gold + Bob Williams and West Elm.
Founded in 1912, Steelcase (NYSE: SCS) offers architectural, furniture and technology products and services.
Steelcase sells through its family of brands: Steelcase, Coalesse, Designtex, PolyVision, Turnstone, Smith System, Orangebox and AMQ.
The global manufacturer has more than 800 dealer locations and reported fiscal 2018 revenue of $3.1 billion.
Founded in 1998, Orangebox designs and manufactures office furniture, including task seating, patented architectural pods and “Smartworking Solutions” — furniture designed to enable users to work in more collaborative and effective ways.
Orangebox has a presence in Africa, Asia, Australia, Europe and North America and an extensive dealer network.