Bedding provider Somnigroup International Inc. (SGI) Monday announced a definitive agreement to acquire Leggett & Platt, Inc. (LEG) in a transaction worth $2.5 blillion. The combination is expected to be accretive to adjusted earnings per share before synergies in the first year. The transaction is currently expected to be closed by end of 2026.
As per the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they own. Leggett & Platt's shareholders will own approximately 9 percent of the combined company on a fully diluted basis.
Leggett & Platt is a diversified manufacturer that designs and produces a broad variety of engineered components and products.
Somnigroup said the combination is expected to lower its net financial leverage and increases financial flexibility. The transaction expected with net positive impact on adjusted EBITDA of $50 million on a fully implemented annual run-rate basis.
Upon the acquisition, Leggett & Platt is expected to operate as a separate business unit within Somnigroup and shall maintain its offices in Carthage, Missouri. Leggett & Platt's Chairman and CEO, Karl Glassman will continue, until a new CEO is appointed to lead the unit within twelve months of the closing date.
The combined company is expected to operate 175 manufacturing facilities across 36 countries worldwide, supported by a global workforce of more than 36,000 colleagues. The combined company will continue to honor Leggett & Platt's existing supply agreements with customers in the bedding industry.
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