Leggett & Platt enters NDA with company that offered to buy it

Leggett & Platt Inc. (NYSE: LEG) has entered a nondisclosure agreement and reached a six-month standstill clause with Dallas, Texas-based Somnigroup International Inc. (NYSE: SGI), a bedding company that recently offered to buy the Carthage-based manufacturer.

Officials with Leggett & Platt said in a news release issued today that its board declined an all-stock offer from Somnigroup that was submitted last month. 

"The board determined that Somnigroup's $12 per share proposal undervalues the company and declined the proposal," officials said in the release. "The board is committed to the course of action that it believes is in the best interests of the company and its shareholders and will continue to evaluate and pursue all opportunities in that regard."

Through the NDA and standstill clause, Leggett & Platt intends to conduct due diligence and determine if a transaction can be reached, according to the release. There's no guarantee of a deal, officials say, noting shareholders do not need to take any action at this time.

Last month's offer from Somnigroup reportedly valued Leggett & Platt, which makes bedding components, home and work furniture components, automotive seat systems and more, at over $1.6 billion.

In the third quarter of 2025, 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 $12.10 as of 11:19 a.m., compared with a 52-week range of $6.48 to $12.77 per share. SGI shares were trading at $92.89, with a 52-week range of $53.10 to $95.36 per share.