#United States #Dallas #Acquisition #Somnigroup #Leggett & Platt

Somnigroup and Leggett & Platt Begin Talks on Potential Merger

In a recent announcement, Somnigroup International Inc. (NYSE: SGI) confirmed that they are engaging in discussions with Leggett & Platt Inc. (NYSE: LEG), following Leggett & Platt's authorization for such talks and the signing of a non-disclosure agreement. This strategic dialogue aims to facilitate due diligence and negotiations regarding a possible merger that promises significant benefits for shareholders of both companies.

Somnigroup expressed optimism about the engagement, noting their commitment to pursue a transaction that would create substantial shareholder value. The company reiterated that its proposal, which was initially revealed on December 1, 2025, involves an all-stock transaction at a value of $12 per share. This offer is notable for presenting a 30% premium based on the average share price of Leggett & Platt over a preceding 30-day period.

Leggett & Platt’s Board has shown willingness to explore these discussions, and Somnigroup is eager to proceed with the due diligence process to understand better the potential impact of the merger on both businesses. Despite this, Somnigroup has made it clear that no revisions to their proposal will occur until after the due diligence phase is complete.

The transaction, should it progress, is contingent upon several factors including the establishment of a definitive agreement, the agreement of terms pleasing to both companies, the approval from Leggett & Platt shareholders, and compliance with regulatory requirements. Notably, the proposed merger will not require the approval of Somnigroup's shareholders, allowing them to proceed without any financing uncertainties.

As this merger consideration unfolds, industry observers will be closely monitoring developments. While the potential merging of Somnigroup, the leading global bedding company with a portfolio of highly recognized brands—including Tempur-Pedic® and Sealy®—with a remarkable player like Leggett & Platt, could reshape the bedding and furniture industry, the ultimate realization of this merger remains uncertain. Somnigroup has refrained from engaging with market speculation and will disclose further developments only as necessary.

### Future Prospects of the Merger
Somnigroup’s forward-looking statements detail an optimistic outlook, projecting growth and improved financial performance that would result from a successful merger. However, the company acknowledges that various external elements, including macroeconomic factors, competitive dynamics, and uncertainties in market demand, could substantially impact these projections.

Industry analysts suggest that a successful integration of Somnigroup and Leggett & Platt could lead to enhanced competitive positioning, innovation in product offerings, and an expansion of their market reach. As bedding demands evolve globally and consumer preferences shift towards more tailored sleep solutions, merging these two companies could be seen as a strategic move to capitalize on these growing trends.

### Conclusion: Anticipation in the Market
While the talks between Somnigroup and Leggett & Platt may take time to materialize into a definitive agreement, the potential synergy and market share the merger could create remain a subject of interest. Stakeholders, including investors, consumers, and competitors alike, will be keenly observing how the discussions progress in the coming months. Somnigroup maintains that they will only share further updates as deemed appropriate.

For ongoing updates regarding this potential transaction, interested parties are encouraged to stay tuned to official communications from both companies or consult their SEC filings which will offer more detailed insights into the progress of this significant industry development.