Leggett & Platt continues to mull potential acquisition

The board of directors at Carthage-based manufacturer Leggett & Platt Inc. (NYSE: LEG) is continuing to review a potential acquisition that was announced earlier this month.

Leggett & Platt on Dec. 1 confirmed receipt of an unsolicited proposal from Dallas, Texas-based Somnigroup International Inc. (NYSE: SGI), a bedding company. A news release indicates the Leggett & Platt board is conducting a review of the proposal and "does not intend to comment further" until the process is completed.

A Leggett & Platt spokesperson said in an email this morning that nothing new is available to share at this time.

“We have experienced advisers working through the process with our board, and we are carefully considering the best path forward for Leggett and its shareholders,” the spokesperson said.

The all-stock proposal has a market value of $12 per Leggett & Platt share. It reportedly values Leggett & Platt, which makes bedding components, home and work furniture components, automotive seat systems and more, at over $1.6 billion. 

"Leggett & Platt has been an important supplier to our company for many years," said Scott Thompson, chair and CEO of Somnigroup, in a separate news release announcing the potential deal. "This proposal would deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform, while also being accretive before synergies to all Somnigroup shareholders."

The release indicates Leggett & Platt would operate independently, with its management team largely intact, under the Somnigroup umbrella should a deal be completed.

In August, Leggett & Platt closed on the sale of its international aerospace products division to New York City-based Tinicum Inc., according to past reporting. Leggett & Platt in January 2024 announced a restructuring initiative with planned plant closures and workforce reductions, and the company brought back former CEO Karl Glassman shortly after. 

In the third quarter, Leggett & Platt reported earnings of $127.1 million, a 183% increase from $44.9 million a year earlier. During the third quarter, Somnigroup International's profits were $177.4 million, a 36.5% increase from $130 million a year earlier. 

LEG shares were trading at $11.01 as of 9:19 a.m., compared with a 52-week range of $6.48 to $12.03 per share. SGI shares were trading at $91.16, which compares with a 52-week range of $53.10 to $95.36 per share.