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Somnigroup to Buy Leggett & Platt in $2.5 Billion All-Stock Deal

The move folds a decades-long supplier into SGI to cut costs through tighter production control.

Overview

  • Somnigroup agreed to acquire Leggett & Platt in an all-stock transaction valued at about $2.5 billion, with LEG holders set to receive 0.1455 SGI shares per LEG share following Monday’s board approvals.
  • After the merger closes, Somnigroup shareholders are expected to own about 91% of the combined company, with former Leggett & Platt investors holding about 9%.
  • The companies target closing by the end of 2026, pending a vote by Leggett & Platt shareholders and regulatory clearance, and Somnigroup shareholders will not vote on the deal.
  • Leggett & Platt will operate as an independent division based in Carthage, Missouri, bringing SGI’s long-time supplier in-house to streamline sourcing of bedding and furniture components.
  • Investors reacted quickly, with Leggett & Platt up about 5.7% in premarket trading and Somnigroup down about 1.3% after the announcement.