Key Takeaways
- Somnigroup International plans to purchase Leggett & Platt through an all-stock transaction totaling $2.5 billion.
- Shares of Leggett & Platt rose 5.7% during premarket hours on Monday; Somnigroup shares declined 1.3%.
- Holders of LEG shares will be granted 0.1455 shares of Somnigroup (SGI) for every LEG share owned.
- Following completion, Somnigroup will control approximately 91% of the merged organization.
- Transaction completion is anticipated by the close of 2026, contingent upon LEG shareholder consent and regulatory clearance.
Somnigroup International (SGI) — the corporate owner behind Tempur-Pedic, Sealy, and Mattress Firm — has announced its intention to acquire Leggett & Platt (LEG) through an all-stock merger valued at approximately $2.5 billion. Following Monday’s announcement on April 13, shares of LEG climbed 5.7% during premarket activity.
Meanwhile, Somnigroup’s stock experienced a 1.3% decline following the announcement, a common market response when companies reveal significant acquisition plans.
For nearly five decades, Leggett & Platt has served as a key supplier to Somnigroup. The Missouri-based manufacturer produces engineered components utilized in bedding products, furniture manufacturing, automotive seating systems, and various other sectors. This acquisition will integrate their longstanding supply partnership under one corporate umbrella.
Leggett & Platt, Incorporated, LEG
Based on the transaction structure, LEG shareholders will be allocated 0.1455 shares of Somnigroup stock for every share currently held. Upon completion, Somnigroup will maintain approximately 91% ownership of the consolidated company, while former Leggett & Platt shareholders will retain the remaining 9% stake.
Both companies’ boards of directors have unanimously endorsed the transaction. Shareholder approval is required only from Leggett & Platt investors — Somnigroup shareholders will not vote on the deal.
Financial Details and Synergies
Somnigroup anticipates the merger will contribute positively to adjusted earnings per share during the first full year following closure — prior to realizing any operational synergies. Management projects annual cost savings of $50 million on an adjusted EBITDA basis, with full implementation expected within a three-year timeframe.
The merged organization generated combined net sales of approximately $11.2 billion throughout 2025, alongside adjusted EBITDA of $1.7 billion and operating cash flow totaling $1.1 billion. These calculations exclude intercompany transactions between the two entities.
The combined enterprise will maintain operations across 175 manufacturing locations spanning 36 countries, with a workforce exceeding 36,000 employees globally.
Leggett & Platt’s market capitalization reached 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 of 2.4 times adjusted EBITDA. Somnigroup has indicated it will maintain Leggett & Platt’s current long-term bond obligations without restructuring.
Goldman Sachs serves as financial advisor to Somnigroup for this transaction. J.P. Morgan Securities is providing advisory services to Leggett & Platt.
Future of Leggett & Platt Operations
Once the acquisition finalizes, Leggett & Platt will function as an independent business division within the Somnigroup corporate structure and will maintain its headquarters in Carthage, Missouri. Current CEO Karl Glassman will continue leading the division and facilitate the transition to a successor CEO within twelve months following deal completion.
The transaction is projected to conclude by the end of 2026, dependent upon regulatory authorizations and approval from LEG shareholders.
During its latest quarterly report, Leggett & Platt posted adjusted EPS of $0.22 for Q4 2025, slightly below the analyst consensus of $0.23. Revenue reached $939 million, exceeding projections. The company additionally announced a quarterly dividend of $0.05 per share for Q1 2026, scheduled for payment on April 15 to shareholders registered as of March 13, 2026.
