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Leggett & Platt finalizes $1.3B acquisition

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Leggett & Platt Inc. (NYSE: LEG) completed its $1.3 billion purchase of Newnan, Georgia-based Elite Comfort Solutions Inc.

The acquisition, announced two months ago, was financed through a recent expansion of Leggett & Platt’s commercial paper program and related revolving credit agreement, as well as a new $500 million, five-year loan, according to a news release.

“Through this acquisition, we gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses,” Leggett & Platt CEO Karl Glassman said in the release. "Our combined expertise in spring and foam technology makes us the leading provider of differentiated products for the global bedding industry and positions us to capitalize on current and future market trends.”

ECS becomes a business unit within Leggett & Platt’s residential products segment. The Carthage-based company intends to keep all of ECS’ 16 plants operational.

The purchase follows Leggett & Platt laying off an unspecified number of employees last month in its fashion bed and home furniture businesses, according to past Springfield Business Journal reporting.

The manufacturer of engineered components and products for homes, offices and vehicles is scheduled to report its fourth-quarter earnings results on Feb. 4.

LEG shares were trading at $38.44 as of 9:40 a.m., compared with a 52-week range of $33.48 to $48.94.

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