Somnigroup International (SGI) has agreed to acquire Leggett & Platt (LEG) in an all-stock transaction worth ~$2.5B, based on Somnigroup’s April 10 closing price.
Under the terms of the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they own.
As a result, Leggett & Platt’s shareholders will own ~9% of the combined company on a fully diluted basis. The agreement has been unanimously approved by the boards of directors of both companies.
The transaction is currently anticipated to close by year-end 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt’s shareholders and receipt of applicable regulatory approvals.
Upon closing, Leggett & Platt is expected to operate as a separate business unit within Somnigroup, similar to Tempur Sealy, Mattress Firm, and Dreams, and to maintain its offices in Carthage, Missouri.
Leggett & Platt’s chairman and CEO, Karl Glassman, will continue to lead Leggett & Platt following the closing date and will assist with a seamless transition to a new CEO of the Leggett & Platt business unit within twelve months of the closing date.
Somnigroup and Leggett & Platt have collaborated for nearly 50 years to drive innovation in the bedding market. After giving effect to the transaction, including elimination of intercompany sales, the combined company generated 2025 net sales of around $11.2B, ~$1.7B of adjusted EBITDA, and $1.1B of operating cash flow.
The combination is expected to be accretive to adjusted EPS before synergies in the first year post close and presents cost synergy opportunities with an expected net positive impact on adjusted EBITDA of $50M on a fully implemented annual run-rate basis.
