Today, HNI Corp. announced it would be acquiring workplace furniture brand Steelcase Inc. in a cash-and-stock transaction worth $2.2 billion. “This acquisition brings together two respected companies with complementary strengths and represents an exciting milestone in HNI’s growth journey,” said HNI chairman, president and CEO Jeffrey Lorenger in a press release. “We have long admired Steelcase for its insight-led approach, which has helped shape our industry for decades. With the Steelcase portfolio of brands and as in-office work trends accelerate, we will be even better positioned to meet the evolving needs of the workplace, enhance dealer and customer relationships, unlock new opportunities for growth, and create compelling value for the combined company’s shareholders.”

HNI operates under two segments: a Workplace Furnishings division and a Residential Building Products side that makes hearth products like gas, electric, wood and pellet-burning fireplaces, stoves, facings and accessories. Steelcase, meanwhile, designs and manufactures furniture for a variety of settings, from home offices to corporate and health care spaces. The acquisition allows the two brands to have a wider reach across the corporate, health care, education, hospitality and residential industries, as well as an enhanced financial profile with an estimated combined annual revenue of around $5.8 billion.

The transaction is expected to close at the end of the calendar year, after which the combined brands will be led by Lorenger. HNI will maintain its corporate headquarters in Muscatine, Iowa, and Steelcase will remain based out of Grand Rapids, Michigan. HNI’s board of directors will expand from 10 directors to 12, to include two of Steelcase’s current independent board members.

“Joining with HNI is a bold step that marks the next era for Steelcase, our customers, dealers, and employees,” said Sara Armbruster, president and CEO of Steelcase, in the press release. “Together, we will be positioned to redefine what’s possible in the world of work, workers, and workplaces. Like Steelcase, HNI is an organization that leads with purpose, shares similar values, and puts the customer at the center of everything they do. I’m excited to see this combination shape our industry.”