Somnigroup International announced a definitive agreement to acquire Leggett & Platt, Incorporated in an all‑stock transaction valued at approximately $2.5 billion. Under the terms, each Leggett & Platt share will be exchanged for 0.1455 shares of Somnigroup common stock, giving Leggett & Platt shareholders roughly 9 % ownership of the combined company.
The deal is expected to close by the end of 2026. Leggett & Platt will continue to operate as a separate business unit headquartered in Carthage, Missouri, with its current CEO Karl Glassman remaining in charge during the transition. The transaction expands Somnigroup’s vertically integrated platform by adding component manufacturing capabilities that span bedding, automotive, furniture, and hydraulic products.
Leggett & Platt, founded in 1883, has a 143‑year history of supplying components to the bedding industry and beyond. The acquisition gives Somnigroup access to a diversified product portfolio and a long‑standing supplier relationship that has existed for nearly five decades.
Financial context: In 2025, Somnigroup reported net sales of $12.3 billion and adjusted EBITDA of $1.8 billion, while Leggett & Platt posted net sales of $4.1 billion and adjusted EBITDA of $0.6 billion. The combined 2025 operating cash flow is projected at $1.2 billion, up from $0.9 billion in 2024, reflecting growth in both companies’ core segments.
Management highlighted the strategic fit: Somnigroup’s chairman and CEO Scott Thompson said the combination “strengthens our engineering capabilities and expands our customer base across multiple end‑user markets.” Leggett & Platt’s CEO Karl Glassman noted the deal “provides shareholders with the opportunity to participate in the future growth of a leading global company on a tax‑deferred basis.”
Leggett & Platt’s shares experienced a notable uptick in trading volume following the announcement, reflecting investor enthusiasm. Some market participants expressed concerns about the valuation and the potential for litigation, as several shareholder law firms have opened investigations into the fairness of the offer.
The transaction is expected to generate $50 million in net positive adjusted EBITDA synergies over three years, with $10 million realized in the first year. Somnigroup will incur a $50 million annualized non‑cash expense related to fair‑value adjustments of the acquired business, and a $10 million expense for fair‑value adjustments of acquired bonds. Leggett & Platt’s net leverage of 2.4 times adjusted EBITDA as of December 31, 2025, will remain unchanged, with existing long‑term debt retained.
The deal aligns with Somnigroup’s broader consolidation strategy, following its $5 billion acquisition of Mattress Firm in early 2025 and its formation through the 2012 merger of Tempur‑Pedic and Sealy Corporation. By integrating component manufacturing, Somnigroup aims to accelerate innovation and improve cost efficiencies across its value chain.
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