Muscatine, Iowa-based HNI makes workplace furnishings and residential building products. Grand Rapids-based Steelcase manufactures office furniture for the workplace including education and healthcare.
It’s being acquired by HNI for $2.2 billion in a cash and stock deal.
HNI says in a news release, “This acquisition brings together two respected companies with complementary strengths.”
HNI shareholders will own roughly 64% of the combined company. Steelcase shareholders will control 36%.
It’s estimated Steelcase’s $3.2 billion annual sales combined with HNI’s $2.6 billion will generate $5.8 billion in annual sales revenue.
Steelcase President and CEO Sara Armbruster said, “Together, we will be a diversified and resilient industry leader, positioned to succeed by offering the most respected and well-recognized brands across a wide range of price points and diverse industry segments including large corporate, small and medium-sized business, healthcare, education and hospitality.
Steelcase employs more than 2,000 workers at its Grand Rapids operation and 11,300 workers across 15 global manufacturing facilities.
The deal is expected to close at the end of the year.