We introduce design transformations for rule-based procedural models, e.g., for buildings and plants. Given two or more procedural designs, each specified by a grammar, a design transformation combines elements of the existing designs to generate new designs. We introduce two technical components to enable design transformations. First, we extend the concept of discrete rule switching to rule merging, leading to a very large shape space for combining procedural models. Second, we propose an algorithm to jointly derive two or more grammars, called grammar co-derivation. We demonstrate two applications of our work: we show that our framework leads to a larger variety of models than previous work, and we show fine-grained transformation sequences between two procedural models.