Somnigroup International (SGI) — the parent company of Tempur-Pedic, Sealy, and Mattress Firm — has struck a deal to buy Leggett & Platt (LEG) in an all-stock transaction valued at around $2.5 billion. The announcement sent LEG stock up 5.7% in premarket trading on Monday, April 13.
Somnigroup International agreed to buy bedding company Leggett & Platt in an all-stock transaction worth about $2.5 billion https://t.co/dR1cC0xVLh
— Bloomberg (@business) April 13, 2026
Somnigroup stock dipped 1.3% on the news, which is a fairly typical reaction when an acquirer announces a major deal.
Leggett & Platt has been a Somnigroup supplier for nearly 50 years. The company makes engineered components for bedding, furniture, automotive seating, and other industries. This deal would bring that long-running supplier relationship fully in-house.
Leggett & Platt, Incorporated, LEG
Under the terms of the agreement, each LEG stockholder will receive 0.1455 Somnigroup shares per share they own. After closing, Somnigroup will hold roughly 91% of the combined entity, with Leggett & Platt stockholders owning the remaining 9%.
Somnigroup’s board and Leggett & Platt’s board both gave unanimous approval. Only Leggett & Platt stockholders need to vote — Somnigroup stockholder approval is not required.
Somnigroup expects the acquisition to add to adjusted earnings per share in its first year after closing — even before synergies kick in. The company is projecting $50 million in annual cost synergies on an adjusted EBITDA basis, to be fully realized over three years.
The combined company posted net sales of roughly $11.2 billion in 2025, along with adjusted EBITDA of $1.7 billion and operating cash flow of $1.1 billion. Those figures strip out intercompany sales between the two businesses.
Together, the two companies would operate 175 manufacturing facilities across 36 countries and employ more than 36,000 people.
Leggett & Platt had a market cap of around $1.36 billion as of Friday’s close. Somnigroup’s market cap stood at $16.4 billion. As of December 31, 2025, LEG carried net leverage of 2.4 times adjusted EBITDA. Somnigroup has said it plans to leave Leggett & Platt’s existing long-term bond debt in place.
Goldman Sachs is advising Somnigroup on the deal. J.P. Morgan Securities is advising Leggett & Platt.
Following the close, Leggett & Platt will operate as a separate business unit within Somnigroup and will keep its offices in Carthage, Missouri. CEO Karl Glassman will stay on to lead the unit and help with the transition to a new CEO within twelve months of closing.
The deal is expected to wrap up by year-end 2026, subject to regulatory approvals and a vote from LEG stockholders.
In its most recent quarterly earnings, Leggett & Platt reported adjusted EPS of $0.22 for Q4 2025, just short of the $0.23 consensus estimate. Revenue came in at $939 million, topping expectations. The company also declared a quarterly dividend of $0.05 per share for Q1 2026, payable April 15 to stockholders of record as of March 13, 2026.
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