Somnigroup Moves to Acquire Leggett & Platt in All-Stock Deal

Somnigroup to Acquire Leggett & Platt in All-Stock Transaction

In a significant move within the bedding industry, Somnigroup International Inc. (NYSE: SGI) has revealed its intention to acquire Leggett & Platt Inc. (NYSE: LEG) through an all-stock transaction. This strategic proposal promises a 30.3% premium over the average closing share price of Leggett & Platt's stock over the last 30 trading days, potentially providing a major boost to shareholder value.

Details of the Proposal

On December 1, 2025, Somnigroup submitted the formal proposal to Leggett & Platt's Board of Directors. If approved, each Leggett & Platt shareholder would receive shares of Somnigroup stock valued at $12.00 per share based on an agreed exchange ratio. This would create an opportunity for Leggett & Platt shareholders to benefit from the future growth potential of the combined companies while participating in a tax-deferred manner due to the all-stock nature of the deal.

Scott Thompson, Chairman and CEO of Somnigroup, underscored the strategic significance of this acquisition: "Leggett & Platt has been an important supplier to our Company for many years. This proposal delivers significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform."

Strategic Advantages

The potential integration of Leggett & Platt into Somnigroup is poised to enhance operational efficiencies and foster unmatched strategic advantages. With Somnigroup being a leader in bedding manufacturing and retail, the merger would not only maintain the existing fruitful relationship but also open avenues for collaborative growth. Leggett & Platt is expected to operate independently under the Somnigroup umbrella, allowing its leadership team to retain significant autonomy while benefiting from Somnigroup’s established customer base, which includes well-known brands like Tempur Sealy and Mattress Firm.

Moreover, this merger will assure Leggett & Platt's employees of continued career opportunities within the larger organization of Somnigroup, which is vital for maintaining morale and retaining talent.

Financial Aspects and Approval Process

The transaction’s completion hinges on typical closing conditions, including necessary regulatory approvals and Leggett & Platt shareholder agreement. Importantly, this acquisition does not present a financing contingency, simplifying the execution of the proposal. Somnigroup’s Board of Directors has unanimously endorsed the proposal, outlining a clear path towards confirmatory due diligence and negotiations of definitive transaction documents.

Given the synergies presented in the merger, both companies expect to benefit significantly from shared resources and combined expertise. One of the key financial drivers noted is the increased accessibility to growth capital, which could accelerate innovation and expansion into new markets.

Conclusion

Somnigroup’s plan to acquire Leggett & Platt highlights the ongoing evolution in the bedding industry. By enhancing their respective strengths, both companies can leverage their market presence to drive future innovation and shareholder value. This proposed acquisition not only promises financial benefits but also demonstrates a commitment to fostering strong operational synergies and enhancing consumer offerings. As stakeholders await further developments, the December 22, 2025 deadline for responses to this proposal looms, positioning the bedding giants at a critical juncture.

Stay tuned for more updates as this story unfolds, impacting the broader bedding market significantly.