Leggett & Platt Acknowledges Somnigroup's Unsolicited Acquisition Proposal

Leggett & Platt, Inc., a diversified manufacturer headquartered in Carthage, Missouri, has publicly confirmed receipt of an unsolicited proposal from Somnigroup International Inc., which trades on the New York Stock Exchange under the ticker SGI. The proposal, which aims for an all-stock acquisition of Leggett & Platt, was officially communicated on December 1, 2025.

The acquisition proposal, although intriguing, comes with conditions. Somnigroup has stated that the exchange ratio for the share transaction is yet to be determined, making the offer non-binding and dependent on further due diligence. Additionally, there was no prior engagement between Somnigroup and Leggett & Platt before this announcement, raising questions about the intent and readiness of Somnigroup to proceed promptly with discussions.

In light of this proposal, the Board of Directors at Leggett & Platt is committed to performing a diligent review, leveraging the expertise of independent financial and legal advisors to evaluate the potential implications of the unsolicited offer. This measure is part of Leggett's fiduciary responsibilities, aimed at ensuring any decisions taken align with the best interests of the company and its shareholders.

As of now, Leggett & Platt's management has indicated that no immediate actions are required from its shareholders regarding Somnigroup's proposal. Stakeholders are encouraged to remain patient as the Board undertakes a thorough evaluation of the offer, which may unfold over the upcoming weeks.

Leggett & Platt plays a vital role in manufacturing a variety of engineered components and products utilized across multiple sectors, including bedding, automotive, and furniture. Their portfolio ranges from bedding components to hydraulic cylinders for heavy machinery, making them a key player within the industry. With a history spanning 142 years, the company has built a reputation as a leading supplier in various markets.

The announcement about the unsolicited proposal comes at a time when Leggett & Platt is adjusting its business strategies in response to ongoing economic challenges. The company recently reported a decrease in sales for the third quarter of 2025, reflective of broader market trends affecting various sectors. Leggett's focus on strategic review and potential restructuring aligns with best practices as companies navigate complex economic landscapes.

While the potential acquisition by Somnigroup presents opportunities for Leggett & Platt, there are inherent risks that accompany such negotiations. Previous experiences indicate that unsolicited proposals can often lead to prolonged discussions without guaranteed outcomes. The emphasis on due diligence highlights the critical nature of the decision-making process in ensuring all aspects of the business are considered.

Leggett & Platt has not provided further comments on Somnigroup's offer until the review of the proposal is completed. However, observers in the finance sector are closely monitoring developments. J.P. Morgan Securities LLC is acting as the financial advisor for Leggett, while Latham & Watkins LLP is providing legal counsel. This partnership demonstrates Leggett's commitment to a structured evaluation of the proposal, ensuring compliance with relevant regulatory standards.

In summary, as Leggett & Platt considers Somnigroup's unsolicited acquisition proposal, the next steps remain contingent on careful evaluation and planning. Stakeholders are encouraged to stay informed as the situation unfolds, recognizing the potential impact such decisions can have on the company's future trajectory.