TLDR
- Somnigroup International plans to purchase Leggett & Platt through an all-stock transaction valued at $2.5 billion.
- LEG shares climbed 5.7% during premarket hours Monday, while Somnigroup shares declined 1.3%.
- Shareholders of LEG will be granted 0.1455 SGI shares for every share of LEG they currently own.
- Following the merger’s completion, Somnigroup will control approximately 91% of the newly formed entity.
- Transaction completion is anticipated by the conclusion of 2026, contingent upon LEG shareholder consent and regulatory clearance.
Somnigroup International (SGI) — the company behind household names like Tempur-Pedic, Sealy, and Mattress Firm — has announced plans to acquire Leggett & Platt (LEG) through an all-stock merger worth approximately $2.5 billion. Following the Monday, April 13 announcement, LEG shares jumped 5.7% during premarket activity.
Somnigroup International agreed to buy bedding company Leggett & Platt in an all-stock transaction worth about $2.5 billion https://t.co/dR1cC0xVLh
— Bloomberg (@business) April 13, 2026
Shares of Somnigroup slipped 1.3% following the disclosure, a common market response when acquiring companies unveil significant transactions.
For nearly five decades, Leggett & Platt has served as a supplier to Somnigroup. The Missouri-based manufacturer produces engineered components for bedding products, furniture, automotive seating applications, and various other sectors. This acquisition would integrate their longstanding supplier partnership under one corporate umbrella.
Leggett & Platt, Incorporated, LEG
Based on the merger agreement’s structure, LEG shareholders will be awarded 0.1455 shares of Somnigroup stock for every share they currently possess. Once the transaction concludes, Somnigroup will maintain approximately 91% ownership of the merged organization, while former LEG shareholders will retain the remaining 9%.
Both companies’ boards of directors have unanimously endorsed the transaction. Shareholder approval is only necessary from Leggett & Platt’s investors — Somnigroup shareholders do not need to vote on the matter.
Deal Economics
Somnigroup anticipates the merger will be accretive to adjusted earnings per share during the first full year following completion — even without accounting for potential synergies. The corporation forecasts achieving $50 million in annual cost savings on an adjusted EBITDA basis, with full realization expected within a three-year timeframe.
The merged organization generated 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 numbers exclude intercompany transactions between the two businesses.
Combined, the organizations would maintain 175 manufacturing operations spanning 36 nations and provide employment for over 36,000 individuals worldwide.
Leggett & Platt’s market capitalization reached approximately $1.36 billion at Friday’s market close. Somnigroup’s market valuation stood at $16.4 billion. As of December 31, 2025, LEG maintained net leverage of 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.
What Happens to Leggett & Platt
After the merger closes, Leggett & Platt will function as an independent business division within the Somnigroup corporate structure and will maintain its headquarters in Carthage, Missouri. CEO Karl Glassman will continue in his leadership role to manage the division and facilitate the transition to a successor CEO within twelve months following completion.
The transaction is projected to finalize by year-end 2026, contingent upon regulatory approvals and affirmative vote from LEG shareholders.
In their latest quarterly financial report, Leggett & Platt disclosed adjusted EPS of $0.22 for the fourth quarter of 2025, falling marginally below the analyst consensus of $0.23. Revenue totaled $939 million, exceeding projections. The company additionally announced a quarterly dividend payment of $0.05 per share for Q1 2026, scheduled for April 15 distribution to shareholders of record as of March 13, 2026.
