Somnigroup to Buy Leggett & Platt in $2.5 Billion All-Stock Deal
Shareholders of the 143-year-old components maker approved the merger, clearing the way for the bedding giant to deepen its vertical integration.
Leggett & Platt shareholders voted overwhelmingly to approve the company's $2.5 billion all-stock acquisition by Somnigroup International (SGI), the world's largest bedding company, removing the last major hurdle before the deal can close.
At a special meeting on August 20, holders of more than 102 million shares voted in favor of the merger agreement, representing roughly 93% of votes cast and about 75% of all outstanding shares. The transaction, announced in April, remains subject to final regulatory approval before it can be completed.
Under the terms of the definitive agreement, Leggett & Platt (LEG) shareholders will receive 0.1455 shares of Somnigroup common stock for each share they own, an exchange ratio that valued the deal at approximately $2.5 billion based on Somnigroup's closing price on April 10, 2026. Leggett & Platt shareholders will own roughly 9% of the combined company on a fully diluted basis.
The acquisition represents the culmination of a courtship that began in December 2025, when Somnigroup publicly disclosed an initial proposal offering Leggett & Platt shareholders a 30.3% premium to the target's 30-day average closing price. Somnigroup Chairman and CEO Scott Thompson said at the time that the proposal would "deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform".
For Somnigroup, the deal deepens a vertical integration strategy that has defined the company's recent expansion. Leggett & Platt, a 143-year-old diversified manufacturer based in Carthage, Missouri, is a leading supplier of bedding components, including innersprings, specialty foam, and adjustable beds, and has served as a key Somnigroup supplier for nearly five years. The combined company generated 2025 net sales of approximately $11.2 billion and roughly $1.7 billion of adjusted EBITDA, operating 175 manufacturing facilities across 36 countries.
Somnigroup projected the deal would be immediately accretive to adjusted earnings per share before synergies and would generate $50 million in net positive adjusted EBITDA on a fully implemented annual run-rate basis, with about $10 million flowing through in the first twelve months after closing. The company also expects the combination to lower its net financial leverage and increase financial flexibility.
Leggett & Platt will continue to operate as a separate business unit within Somnigroup, alongside Tempur Sealy, Mattress Firm, and Dreams, maintaining its headquarters in Carthage. Chairman and CEO Karl Glassman will lead the unit through a transition period of up to twelve months before a new business-unit CEO is installed. The combined company has committed to honoring Leggett & Platt's existing supply agreements with bedding-industry customers.