Leggett & Platt to be acquired in $2.5B deal

Carthage-based manufacturer Leggett & Platt Inc. (NYSE: LEG) has reached an acquisition agreement with Dallas, Texas-based bedding company Somnigroup International Inc. (NYSE: SGI).

The all-stock transaction is valued at roughly $2.5 billion, according to a news release. Leggett & Platt shareholders would receive 0.1455 shares of Somnigroup and own roughly 9% of the combined company under the deal that’s expected to close by year’s end.

“We are pleased to reach this agreement with Somnigroup, a valued long-standing customer and partner,” Leggett & Platt Chair and CEO Karl Glassman said in the release. “This transaction provides Leggett & Platt shareholders with the opportunity to participate in the future growth and value creation of a leading global company on a tax deferred basis.”

Leggett & Platt is expected to operate as a separate business unit within Somnigroup. Additionally, Glassman would lead Leggett & Platt through the closure of the deal, after which he would assist for up to 12 months in the transition of a new CEO to lead the Leggett & Platt unit. Somnigroup officials, through a spokesperson, declined to comment on whether any other staffing changes are expected.

Combined with Leggett & Platt, Somnigroup would have roughly $11.2 billion in net sales and $1.1 billion of operating cash flow, according to the release. Somnigroup officials said that following the close of the transaction, Leggett & Platt is expected to operate as a separate business unit within Somnigroup and to maintain its offices in Carthage. An investor presentation ahead of the acquisition notes that the combined company will continue to honor Leggett & Platt’s existing supply agreements with customers in the bedding industry.

“Leggett & Platt’s strong engineering capabilities, diversified end users and cash-generating financial profile meaningfully enhance our global platform,” said Scott Thompson, Somnigroup chair and CEO, in the release. “This combination is consistent with our vertical integration strategy, which drives innovation and value for customers while also enhancing shareholder value.”

Officials indicated the acquisition would benefit the newly combined companies’ bottom line, with a $50 million net positive impact over three years.

Sourcing, operations and product innovation are the main areas where Somnigroup and Leggett & Platt expect to find cost efficiencies, according to the release. Roughly $10 million in savings is expected in the first year after the deal closes, according to the release.

Back in January, Leggett & Platt’s board declined an acquisition offer from Somingroup and entered a nondisclosure agreement and six-month standstill clause with the company, according to past reporting.

“The board determined that Somnigroup’s $12 per share proposal undervalues the company and declined the proposal,” officials said in a Jan. 20 news release.

Through the NDA and standstill clause, Leggett & Platt planned to conduct due diligence and determine if a transaction could be reached, officials said in the release earlier this year.

In 2025, Leggett & Platt’s earnings were $235.4 million, which compares with a net loss of $511.5 million in 2024, according to past reporting. In a Feb. 11 news release, company officials noted they pursued a restructuring plan. That plan included facility closures and real estate sales, according to past reporting.

“We are pleased the restructuring plan we launched in early 2024 was substantially completed by the end of 2025, resulting in greater (earnings before interest and taxes) benefit with lower costs than originally expected,” Glassman said in the release. “Throughout 2025, our teams executed our strategic priorities, including strengthening our balance sheet, improving operational efficiency and positioning the company for long-term growth.”

An employee for over 40 years, Glassman returned to lead the company back into the black in May 2024 after retiring in 2021, according to past reporting.

Somnigroup officials reported $384 million in net income last year. They said in their fourth-quarter 2025 report that net sales for that year reached almost $7.5 billion, 51.6% higher than the previous year’s net sales total of roughly $4.9 billion

Leggett & Platt invented the bedspring in 1885, according to its website. It produces a range of bedding products including steel rod and wire, specialty foam, adjustable beds; while also producing hydrauling cylinders and a range of products for automotive use. Meanwhile, some 34% of 2025 estimated net trade sales last year came from furniture, flooring and textile products, according to the company’s website.

Somnigroup lists a portfolio of product brands including Tempur-Pedic, Sealy, Stearns & Foster, as well as Sherwood Bedding private label products on its website. Its products are sold at retailers like Tempur-Pedic, Mattress Firm, U.K.-based Dreams and Sweden-based SOVA.

LEG shares were trading at $9.99 after hours on April 10, the last business day ahead of the April 13 announcement of the acquisition. At press time for this report on April 16, they traded at $11.37, compared to a 52-week range of $6.56 to $13 per share.

SGI shares were trading at $78.06 after hours on April 10, while they traded at $80.36 at press time on April 16. That’s compared with a 52-week range of $56.15 to $98.56 per share.