Herman Miller will acquire Knoll for $1.8 billion. The transaction, which has been unanimously approved by the the companies’ boards of directors, is expected to close by the end of 2021.

Upon completion of the transaction, Herman Miller shareholders will own approximately 78 per cent of the combined company and Knoll shareholders will own approximately 22 per cent.

“This transaction brings together two pioneering icons of design with strong businesses, attractive portfolios and long histories of innovation,” said Andi Owen, president and CEO of Herman Miller. “As distributed working models become the new normal for companies, businesses are reimagining the office to foster collaboration, culture and focused work, while supporting a growing remote employee base. At the same time, consumers are making significant investments in their homes. With a broad portfolio, global footprint and advanced digital capabilities, we will be poised to meet our customers everywhere they live and work.”

The merger of the two office furniture leaders will create a broader product portfolio, and will enhance scale and capabilities to drive growth and profitability.

Following the close of the transaction, Owen will serve as president and CEO of the combined company. Andrew Cogan, Knoll chairman and CEO, plans to depart the combined company upon closing of the transaction after a successful 30-year career with Knoll, during which time Knoll received the National Design Award for Corporate and Institutional Achievement from the Smithsonian’s Cooper-Hewitt, National Design Museum.

“I want to thank Andrew for his partnership in reaching this agreement and recognize his outstanding dedication to Knoll during its many years of success,” said Owen. “Knoll thrives today as a result of Andrew’s dedication to its founders’ commitment to good design. We look forward to welcoming Knoll’s incredibly talented team.”