MUSCATINE, Iowa — HNI Corporation completed the acquisition of Steelcase Inc., creating a combined enterprise with pro forma annual revenues of $5.8 billion.

The deal between the two iconic and long-time competitors in the contract furniture space will unite "two industry leaders to meet the dynamic challenges and evolving needs of the workplace amid accelerating in-office work trends," the company said. HNI will maintain its corporate headquarters in Muscatine, Iowa, while Steelcase will continue operations from its Grand Rapids, Michigan headquarters.

“We’re proud to announce the completion of the acquisition of Steelcase, which was strongly supported by the shareholders of both companies,” said Jeff Lorenger, HNI Corporation’s chairman, president and CEO. “We are bringing together two highly respected companies with shared values, talented teams, strong financial profiles, and highly complementary capabilities—innovation, thought leadership, and operational excellence chief among them. This strong foundation, combined with expected synergies, will accelerate our ability to invest in long-term operational enhancements, digital transformation, and customer-centered buying experiences."

Lorenger said the integration of HNI and Steelcase will be done "thoughtfully and in phases, leveraging a disciplined and proven approach informed by recent experience, while continuing to build on the iconic brands for which both companies are widely respected.”

The transaction strengthens HNI’s position, combining highly complementary portfolios, distribution networks, and capabilities to create an industry leading enterprise best suited to serve the needs of all customers. The combined business will have pro forma annual revenues of $5.8 billion.

According to the most recent FDMC 300 ranking of top North American wood products manufacturers, HNI ranks #11 on the listing with annual sales of approximately $1.9 billion. It employs 7,700 workers at its HNI and Kimball International plants in the U.S. and around the world. Steelcase ranks #4 on the list with approximately $2.2 billion in sales and employs 11,300 people at 22 manufacturing and distribution facilities in the U.S. and Mexico.

For each share of Steelcase class A common stock owned immediately prior to the closing of the transaction, each Steelcase shareholder is receiving, at such shareholder's election, without interest and subject to automatic adjustment, either: (a) $7.20 in cash and 0.2192 shares of HNI common stock; (b) $16.19 in cash and 0.0009 shares of HNI common stock; or (c) 0.3940 shares of HNI common stock. No fractional HNI common stock will be issued in the transaction, and holders of Steelcase class A common stock will receive cash in lieu of any fractional HNI common stock.