Somnigroup International Inc. announced that it will acquire Leggett & Platt, Inc. in an all‑stock transaction valued at approximately $2.5 billion, based on Somnigroup’s closing share price of $78.06 on April 10, 2026. Leggett & Platt shareholders will own roughly 9 % of the combined company on a fully diluted basis, and the transaction is expected to close by year‑end 2026 subject to customary regulatory approvals and shareholder consent.
The deal is a strategic vertical integration that expands Somnigroup’s supply‑chain control and product‑innovation pipeline. Leggett & Platt’s diversified component manufacturing—innersprings, specialty foams, and automotive seating—will complement Somnigroup’s portfolio of mattress brands and retail operations. Management projects about $50 million in annual EBITDA synergies, with $10 million expected to benefit adjusted EBITDA in the first twelve months after closing, and the remaining $40 million to accrue over the next two years.
Pro‑forma financials for 2025 show the combined company will generate net sales of roughly $11.2 billion, adjusted EBITDA of about $1.7 billion, and operating cash flow of $1.1 billion. The combined entity will operate 175 manufacturing facilities in 36 countries and employ more than 36,000 colleagues. Somnigroup’s Q4 2025 results, driven by Mattress Firm sales, reported net sales of $1.868 billion—an increase of 54.7% from $1.208 billion in Q4 2024—and a gross margin of 44.0% versus 40.1% in the prior year.
Leggett & Platt, headquartered in Carthage, Missouri, is a diversified manufacturer of engineered components for homes and automobiles. Chairman and CEO Karl Glassman will continue to lead the unit and will assist in the transition to a new CEO within twelve months of closing. As of December 31 2025, Leggett & Platt’s net leverage was 2.4 times adjusted EBITDA, and the company declared a quarterly dividend of $0.05 per share for the first quarter of 2026.
Analysts have responded positively to the transaction. Raymond James reiterated a Strong Buy rating, BofA Securities maintained a Buy rating, Jefferies upgraded Somnigroup to Buy, and UBS kept a Buy rating while adjusting its price target. The market reaction was driven by the vertical integration strategy, the projected synergies, and the attractive upside for Leggett & Platt shareholders—approximately 14 % above the April 10 closing price.
Management emphasized the strategic fit. Somnigroup Chairman and CEO Scott Thompson said the acquisition “enhances Somnigroup’s global platform, drives innovation, and strengthens shareholder value.” Leggett & Platt Chairman and CEO Karl Glassman noted the transaction “provides Leggett & Platt shareholders with the opportunity to participate in the future growth and value creation of a leading global company.”
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