Somnigroup International announced that it has entered into a definitive agreement to acquire Leggett & Platt, Incorporated in an all-stock transaction valued at approximately $2.5 billion, based on Somnigroup’s closing share price on April 10, 2026.
Under the terms of the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each share they own, resulting in Leggett & Platt shareholders holding approximately 9% of the combined company on a fully diluted basis. The transaction has been unanimously approved by the boards of both companies and is expected to close by the end of 2026, subject to shareholder approval from Leggett & Platt and customary regulatory approvals.
Following the close, Leggett & Platt will operate as a separate business unit within Somnigroup, alongside existing businesses such as Tempur Sealy, Mattress Firm, and Dreams, while maintaining its headquarters in Carthage, Missouri. Chairman and CEO Karl Glassman will continue to lead the business through the transition period and support the appointment of a new CEO within twelve months post-closing.
The acquisition builds on a nearly 50-year partnership between the two companies and is designed to strengthen Somnigroup’s vertical integration strategy. By combining component engineering with mattress design and consumer insights, the companies expect to accelerate innovation, improve product development cycles, and deliver more cost-effective, consumer-centric solutions.
The combined company is expected to generate approximately $11.2 billion in net sales, $1.7 billion in adjusted EBITDA, and $1.1 billion in operating cash flow based on 2025 figures. It will operate 175 manufacturing facilities across 36 countries, employing more than 36,000 people.
Strategically, the transaction expands Somnigroup’s reach beyond bedding into adjacent industries, leveraging Leggett & Platt’s diversified portfolio, which includes automotive seating systems, furniture components, flooring underlayment, and industrial products. The deal is also expected to reduce financial leverage, enhance cash flow generation, and support broader capital allocation flexibility.
Financially, the transaction is expected to be accretive to adjusted earnings per share in the first year before synergies. The companies anticipate approximately $50 million in annual run-rate cost synergies, primarily from sourcing, operations, and product innovation, to be fully realized within three years, with about $10 million expected in the first year following closing.
Leggett & Platt’s existing long-term debt will remain in place post-transaction, and its financial results will be reported as a new segment within Somnigroup.
Support: Advisors on the transaction include Goldman Sachs & Co. LLC and Cleary Gottlieb Steen & Hamilton LLP for Somnigroup, and J.P. Morgan Securities LLC and Latham & Watkins LLP for Leggett & Platt.
KEY QUOTES
“We are proud to have Leggett & Platt join Somnigroup. Leggett & Platt’s strong engineering capabilities, diversified end users and cash–generating financial profile meaningfully enhance our global platform. This combination is consistent with our vertical integration strategy, which drives innovation and value for customers while also enhancing shareholder value. By bringing a successful supply partner into our group, we accelerate our ability to deliver differentiated, consumer–centric innovation. This combination is evidence of our commitment to disciplined capital allocation centered on long–term shareholder value creation.”
Scott Thompson, Chairman And CEO, Somnigroup International
“We are pleased to reach this agreement with Somnigroup, a valued long–standing customer and partner. This transaction provides Leggett & Platt shareholders with the opportunity to participate in the future growth and value creation of a leading global company on a tax deferred basis. On behalf of our Board of Directors and management team, I would like to thank the Leggett & Platt team for their hard work and dedication. For more than 140 years, we have provided our customers with innovation and quality. I believe this combination positions us to continue that track record and deliver compelling strategic and financial value for our customers, employees and shareholders.”
Karl Glassman, Chairman And CEO, Leggett & Platt
