Somnigroup to Acquire Leggett & Platt in $2.5 Billion Strategic Merger

Somnigroup International Inc. (SGI) announced on Monday a definitive agreement to acquire Leggett & Platt, Inc. (LEG) in a transaction valued at $2.5 billion. Under the terms of the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each share of Leggett & Platt common stock they own. Upon completion, Leggett & Platt shareholders will hold approximately 9% of the combined company on a fully diluted basis. The acquisition is strategically designed to lower Somnigroup's net financial leverage and increase overall financial flexibility. From a profitability standpoint, the merger is expected to be accretive to adjusted earnings per share in the first year, even before the realization of synergies. Somnigroup anticipates a net positive impact on adjusted EBITDA of $50 million on a fully implemented annual run-rate basis. Operationally, Leggett & Platt will continue to function as a separate business unit, maintaining its existing offices in Carthage, Missouri. Current Chairman and CEO Karl Glassman will remain in his leadership position until a new CEO is appointed to lead the unit, a process expected to conclude within twelve months of the closing date. The combined organization will possess a massive global infrastructure, operating 175 manufacturing facilities across 36 countries with a total workforce exceeding 36,000 employees. Somnigroup has further committed to honoring all existing supply agreements that Leggett & Platt maintains with customers in the bedding industry. The transaction is currently expected to close by the end of 2026.