Leggett & Platt finalizes sale of aerospace unit

Carthage-based manufacturer Leggett & Platt Inc. (NYSE: LEG) has closed on the sale of its international aerospace products division after inking the deal this spring.

The aerospace products group officially sold Aug. 29 to affiliated funds managed by New York City-based Tinicum Inc., according to a news release. Leggett & Platt officials expect after-tax proceeds of around $250 million for the deal, which was announced with a $285 million total price tag in April. 

"Proceeds will be used primarily to pay down debt and strengthen the company's balance sheet and leverage ratio," Leggett & Platt officials said in the release. "This divestiture was part of the outcome of the strategic business review to identify and focus on businesses that align with the company's long-term goals."

Leggett & Platt in January 2024 announced a restructuring plan that includes plant closures and workforce reductions, according to past reporting. 

The now-sold aerospace products group has seven manufacturing facilities in the United States, United Kingdom and France, with around 700 employees and 2024 net trade sales of $190 million. The aerospace unit supplies engineered tube and duct assemblies that are primarily used for commercial and military aircraft platforms and space launch vehicles.

With the sale completed, Leggett & Platt noted in the release that the company is adjusting its 2025 guidance to include expected sales of $3.9 billion to $4.2 billion, compared with $4 billion to $4.3 billion previously, and adjusted earnings per share to 95 cents to $1.15 from a previous projection of $1 to $1.20.

During the second quarter, Leggett & Platt reported $52.5 million in profits, which compared with a $602.2 million loss a year earlier, according to past reporting. Top-line trade sales decreased by 6% to nearly $1.1 billion during the latest quarter. 

LEG shares were trading at $9.94 as of 10:49 a.m., compared with a 52-week range of $6.48 to $14.24 per share.