UPDATE 1-Herman Miller to buy Hong Kong-based POSH Office Systems

* Herman Miller expects deal to close in Q2 2012

* POSH posted 2010 sales of about $50 mln (Follows alerts)

March 11 (Reuters) - Office furniture maker Herman Miller agreed to buy Hong Kong-based peer POSH Office Systems Ltd for an undisclosed amount.

Herman Miller said the purchase price for POSH Office, which had sales of about $50 million in 2010, is expected to include an upfront cash payment and a performance-based payment at the conclusion of an earn-out period.

Herman Miller, which posted more than $1.3 billion in sales for fiscal 2010, expects this acquisition to be completed in the first quarter of fiscal 2012.

"As the demand for high quality seating and furniture continues to grow in the region (China) we anticipate a significant increase in the sales of Herman Miller products through the POSH dealer network," Herman Miller Chief Executive Brian Walker said.

POSH Office employs about 1,200 people.

Shares of the Zeeland, Michigan-based Herman Miller closed at $25.56 on Thursday on Nasdaq. (Reporting by Fareha Khan in Bangalore; Editing by Don Sebastian)