Somnigroup Acquires Leggett & Platt, Boosts EBITDA $50M

(SGI) announced a definitive agreement to acquire diversified manufacturer Leggett & Platt, Inc. (LEG) for $2.5 billion, a transaction expected to close by the end of 2026 and be accretive to Somnigroup's adjusted earnings per share before synergies in the first year.

As per the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each Leggett & Platt share, resulting in approximately 9 percent ownership of the combined company on a fully diluted basis. Somnigroup states the combination lowers its net financial leverage, increases financial flexibility, and projects a net positive impact on adjusted EBITDA of $50 million on a fully implemented annual run-rate basis.

Leggett & Platt will operate as a separate business unit, maintaining its Carthage, Missouri offices, with Chairman and CEO Karl Glassman continuing until a new CEO is appointed within twelve months of closing. The combined entity will operate 175 manufacturing facilities across 36 countries with over 36,000 employees, honoring existing supply agreements.