Leggett & Platt and Somnigroup Engage in Confidential Discussions to Explore Potential Acquisition

Leggett & Platt and Somnigroup: Exploring New Horizons

In a strategic move reflecting the dynamic landscape of corporate mergers and acquisitions, Leggett & Platt, a significant player in the manufacturing sector, announced today that its Board of Directors has inked a non-disclosure agreement with Somnigroup. This decision aims to facilitate essential due diligence and assess whether a viable transaction can be established that benefits both Leggett & Platt and its shareholders.

The discussions with Somnigroup arise in the aftermath of an unsolicited proposal received on December 1, 2025. Somnigroup expressed interest in acquiring Leggett & Platt through an all-stock transaction, offering a price of $12 per share. However, upon thorough scrutiny in consultation with independent financial and legal advisors, the Board of Directors deemed this proposal as undervaluing the company and decided to decline.

Despite this initial refusal, the Board remains optimistic about exploring opportunities that may arise from further discussions with Somnigroup. They have committed to assessing any potential transactions that may present themselves in pursuit of maximizing value for the company and its shareholders.

What's Next for Leggett & Platt?

Leggett & Platt has not pledged to provide ongoing updates regarding its evaluation process and may not comment publicly further unless circumstances dictate an update is necessary. The company has stressed to its shareholders that there’s no immediate action required from them at this juncture. The outcome of these evaluations, including whether a transaction will materialize or the specifics regarding any future agreements, remains uncertain at this time.

The Role of Advisers

To navigate this process, Leggett & Platt has retained J.P. Morgan Securities LLC as its financial advisor and Latham & Watkins LLP as its legal advisor. This support underscores the significance of these discussions and the complexities inherent in potential mergers and acquisitions.

A Closer Look at Leggett & Platt

Founded 143 years ago, Leggett & Platt operates as a diversified manufacturer supplying a vast range of engineered components and products utilized in homes and automobiles. With a solid reputation, the company stands out for its offerings in bedding components, automotive systems, furniture components, flooring underlayments, and hydraulic cylinders.

Despite the challenges presented by the marketplace—including inflation, fluctuating material costs, and broader economic conditions—Leggett & Platt remains committed to its strategic objectives. The conversations with Somnigroup illustrate the ongoing adaptability and forward-thinking strategies the company employs in navigating potential growth opportunities.

Looking Towards the Future

As corporate dynamics evolve, entities like Leggett & Platt must carefully weigh potential mergers and acquisitions against their own strategic goals to ensure shareholder interests remain protected. The commitment to exploring financial avenues that can enhance value, combined with maintaining transparent communication with stakeholders, is crucial as they embark on this evaluation journey with Somnigroup.

As these developments unfold, the market will stay tuned to see how Leggett & Platt's strategic assessments materialize in the coming months. The potential for change looms, and so do the opportunities, as both companies explore what may lie ahead in their negotiations.

For more detailed information on Leggett & Platt, interested parties can visit Leggett's website.

In summary, while initial proposals have seen pushback from Leggett & Platt, the door remains open for future discussions. Stakeholders watch closely as this narrative progresses, hoping to glean insights into the next steps for one of the industry's pivotal manufacturers.