Key Highlights
- Somnigroup International has agreed to purchase Leggett & Platt through an all-stock transaction valued at approximately $2.5 billion.
- Shares of Leggett & Platt surged 5.7% during Monday’s premarket session; Somnigroup shares declined 1.3%.
- Shareholders of LEG will be given 0.1455 shares of Somnigroup (SGI) for every LEG share owned.
- Following the transaction’s completion, Somnigroup will control approximately 91% of the merged organization.
- The transaction is projected to finalize by the conclusion of 2026, contingent upon approval from LEG shareholders and regulatory authorities.
Somnigroup International (SGI) — which owns well-known brands including Tempur-Pedic, Sealy, and Mattress Firm — has announced plans to acquire Leggett & Platt (LEG) through an all-stock merger valued at approximately $2.5 billion. The deal announcement triggered a 5.7% surge in LEG shares during premarket hours on Monday, April 13.
Meanwhile, Somnigroup shares declined 1.3% following the news, a common market response when acquiring companies announce significant transactions.
The relationship between Leggett & Platt and Somnigroup spans nearly five decades as supplier partners. Leggett & Platt manufactures engineered components serving the bedding, furniture, automotive seating, and various other sectors. The acquisition would integrate this extensive supplier partnership under one corporate umbrella.
Leggett & Platt, Incorporated, LEG
Based on the merger agreement, LEG shareholders will be awarded 0.1455 shares of Somnigroup stock for every share currently held. Upon completion, Somnigroup shareholders will possess approximately 91% of the unified company, while former Leggett & Platt investors will maintain the remaining 9% stake.
Both companies’ boards of directors have unanimously endorsed the transaction. The merger requires a shareholder vote exclusively from Leggett & Platt investors — Somnigroup shareholder approval is unnecessary.
Financial Implications
Somnigroup anticipates the deal will be accretive to adjusted earnings per share during the first full year following completion — prior to accounting for any synergies. The organization projects annual cost synergies totaling $50 million on an adjusted EBITDA basis, which will be fully achieved within a three-year timeframe.
The merged enterprise generated combined net sales of approximately $11.2 billion throughout 2025, alongside adjusted EBITDA reaching $1.7 billion and operating cash flow of $1.1 billion. These numbers exclude intercompany transactions between the organizations.
The combined operation would manage 175 production facilities spanning 36 nations worldwide and maintain a workforce exceeding 36,000 employees.
Leggett & Platt’s market capitalization measured approximately $1.36 billion at Friday’s market close. Somnigroup’s valuation stood at $16.4 billion. As of December 31, 2025, LEG reported net leverage at 2.4 times adjusted EBITDA. Somnigroup has indicated its intention to maintain Leggett & Platt’s current long-term bond obligations.
Goldman Sachs serves as financial advisor to Somnigroup for this transaction. J.P. Morgan Securities is providing advisory services to Leggett & Platt.
Post-Merger Structure
Once the acquisition completes, Leggett & Platt will function as an independent business division within Somnigroup’s organizational structure and will retain its headquarters location in Carthage, Missouri. Current CEO Karl Glassman will continue leading the division and assist with transitioning responsibilities to a successor CEO within twelve months following the deal’s closure.
The merger is scheduled to conclude by December 2026, pending regulatory clearances and affirmative shareholder vote from LEG investors.
During its latest quarterly financial report, Leggett & Platt posted adjusted earnings per share of $0.22 for the fourth quarter of 2025, slightly below the analyst consensus projection of $0.23. Revenue totaled $939 million, exceeding analyst forecasts. The company additionally announced a quarterly dividend payment of $0.05 per share for the first quarter of 2026, distributable on April 15 to shareholders registered as of March 13, 2026.
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