by This week’s announcement of HNI’s acquisition of Steelcase is a blockbuster event for the broader furniture industry. This $2.2 billion transaction brings together two of the largest commercial furniture companies in the world, with combined revenues of approximately $6 billion.
The commercial industry is now clearly “resi-mercial” focused, with MillerKnoll’s Design Within Reach stores and HermanMiller.com generating significant revenue. Meanwhile, Haworth’s luxury home furnishings group produces over $1 billion in annual sales.
Goldman Sachs, PitchBook and other M&A sources are all forecasting more transactions across both the office and home sectors. In just the past month, we’ve seen a wave of major deals, including HNI–Steelcase; our most recent deal — Ladco acquired by Cascata Capital; Sonneman reacquired by Hudson Valley Lighting; Chairish acquired by ATG; and MasterBrand and American Woodmark announcing a merger. These transactions are being fueled by strong cash positions at large companies, rising profits and abundant dry powder seeking deployment.
Finally, Wayfair’s recent earnings delivered actual profits — a surprising and encouraging sign that e-commerce may be turning a corner in both market share and profitability.
So, what does this mean for the broader furniture industry? As we see it, M&A should surge in the second half of 2025 and into 2026, as stronger companies pursue value acquisitions and underperforming companies seek strategic exits to stem losses. Public markets are at all-time highs, banks are healthy (and willing to lend), there’s a wave of private credit funds eager to deploy capital, and both strategic and private equity buyers are actively hunting for deals.
Add to that the demographic reality: baby boomers — now in their late 60s and 70s — are preparing for exit. The result? A significant buildup of both buyers and sellers, setting the stage for an M&A boom.
The home furnishings industry remains highly fragmented, with the Top 25 businesses accounting for just about 50% of total industry volume. The largest, Ashley, generates $7 billion to $8 billion in revenue. From there, the list quickly drops to La-Z-Boy (~$2 billion) and Ethan Allen (less than $1 billion). Our database contains over 3,000 companies with revenues below $200 million — creating ample opportunity for consolidation.
Some specific ideas we see emerging:
+ Chinese firms seeking to acquire U.S. marketing companies to accelerate exports of Asian goods into America.
+ Whole-home strategies from single-product manufacturers expanding through acquisition.
+ Struggling companies under pressure from lenders or interest burdens, creating value-buy opportunities.
+ High-performing companies remaining attractive targets for strategic, PE and institutional investors.
+ E-commerce businesses beginning to show real growth and profits; legacy companies may adopt omnichannel strategies via acquisition.
+ Companies with diverse holdings divesting noncore divisions to focus on core business, using proceeds to reinvest in primary operations.
Keep your eyes open as these trends emerge. We anticipate several more transactions in Q3 of this year and a further acceleration of activity in Q4 and into 2026.
Stuart Stump Mullens is a partner in Stump & Co., a mergers and acquisition specialist for the home furnishings industry.
