Key Highlights
- Somnigroup International plans to acquire Leggett & Platt through an all-stock transaction valued at $2.5 billion.
- Shares of Leggett & Platt rose 5.7% during premarket hours on Monday, while Somnigroup stock declined 1.3%.
- Each LEG shareholder will obtain 0.1455 shares of Somnigroup (SGI) stock in exchange for every LEG share owned.
- Following completion, Somnigroup shareholders will control approximately 91% of the merged enterprise.
- Transaction completion is anticipated by late 2026, contingent upon LEG shareholder consent and regulatory clearance.
Somnigroup International (SGI) — the organization behind brands including Tempur-Pedic, Sealy, and Mattress Firm — announced Monday, April 13, that it will acquire Leggett & Platt (LEG) through an all-stock merger worth approximately $2.5 billion. Following the announcement, LEG shares surged 5.7% during premarket trading.
Shares of Somnigroup declined 1.3% following the announcement, a common market response when acquiring companies reveal significant merger plans.
Leggett & Platt has maintained a supplier partnership with Somnigroup spanning nearly five decades. The Missouri-based manufacturer produces engineered components for bedding products, furniture, automotive seating systems, and various other industrial applications. The acquisition will integrate this established supplier directly into Somnigroup’s operations.
Leggett & Platt, Incorporated, LEG
According to the merger agreement, LEG shareholders will exchange each share they currently hold for 0.1455 shares of Somnigroup common stock. When the transaction completes, Somnigroup shareholders will maintain approximately 91% ownership of the combined organization, while former Leggett & Platt shareholders will hold the remaining 9%.
Both companies’ boards of directors unanimously approved the transaction. Shareholder approval will be required from Leggett & Platt stockholders only; Somnigroup shareholder consent is unnecessary for the deal to proceed.
Financial Impact and Projections
Somnigroup anticipates the merger will be accretive to adjusted earnings per share during the first full year following completion, even before accounting for anticipated synergies. Management projects annual cost synergies of $50 million on an adjusted EBITDA basis, which the company expects to fully achieve within a three-year timeframe.
The merged entity reported combined net sales of approximately $11.2 billion during 2025, alongside adjusted EBITDA of $1.7 billion and operating cash flow totaling $1.1 billion. These calculations exclude intercompany transactions between the two organizations.
The combined enterprise will maintain 175 manufacturing locations spanning 36 countries worldwide, with a workforce exceeding 36,000 employees.
Leggett & Platt’s market capitalization reached approximately $1.36 billion at Friday’s closing bell. Somnigroup’s market valuation stood at $16.4 billion. At the end of December 2025, LEG reported net leverage of 2.4 times adjusted EBITDA. Somnigroup management has indicated plans to 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 provides advisory services to Leggett & Platt.
Post-Merger Integration Plans
After transaction completion, Leggett & Platt will continue functioning as an independent business division within the Somnigroup corporate structure. The company will maintain its headquarters in Carthage, Missouri. Current CEO Karl Glassman will remain in his leadership role to oversee the business unit and facilitate the transition to a successor CEO within twelve months following the deal’s closing.
The merger is scheduled to finalize by the conclusion of 2026, pending regulatory approvals and affirmative vote from LEG shareholders.
During its latest quarterly report, Leggett & Platt disclosed adjusted earnings per share of $0.22 for the fourth quarter of 2025, slightly below analyst consensus of $0.23. Quarterly revenue reached $939 million, exceeding market projections. The company’s board also approved a quarterly dividend of $0.05 per share for the first quarter of 2026, with payment scheduled for April 15 to shareholders on record as of March 13, 2026.
