Steelcase Inc., the Grand Rapids-based office furniture company founded in 1912, will merge with Iowa-based HNI Corporation in a cash-and-stock transaction valued at $2.2 billion.

Under the agreement, HNI shareholders will own about 64% of the combined company, with Steelcase shareholders holding approximately 36%. HNI will maintain its headquarters in Muscatine, Iowa, while Steelcase will continue to operate from its Grand Rapids base.

The deal unites two of the largest workplace furniture manufacturers in the country, with plans to retain the Steelcase brand. Both companies have said the Grand Rapids headquarters will remain in place for now, highlighting the innovation and design work that takes place locally.

While the long-term impact on local jobs remains to be seen, the merger has the potential to expand market reach, enhance product portfolios, and strengthen dealer and customer relationships. The combined company plans to focus on growth opportunities as office demand evolves.

The transaction is expected to close by the end of 2025, pending shareholder approval.