Somnigroup International has submitted a formal proposal to the board of Leggett & Platt to acquire all outstanding common shares in an all-stock transaction. Under the terms of the offer, Leggett & Platt shareholders would receive Somnigroup common stock valued at $12 per share of Leggett & Platt, based on a fixed exchange ratio yet to be agreed upon. The proposal represents a 30.3% premium over the average closing price of Leggett & Platt shares over the last 30 trading days, marking a level not seen since December 2024.
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The all-stock structure would allow Leggett & Platt shareholders to participate in the combined company's future growth on a tax-deferred basis. Scott Thompson, Somnigroup's Chairman and CEO, emphasized that Leggett & Platt has long been a key supplier to the company. He added that the deal would deliver significant value to Leggett & Platt shareholders through a compelling premium while providing accretive benefits to Somnigroup shareholders even before expected synergies.
The proposal was formally delivered to Leggett & Platt's board on Monday, December 1. Somnigroup International was created in February following Tempur Sealy's acquisition of Mattress Firm. Its portfolio now includes Tempur Sealy, Dreams, and Mattress Firm, and in October, the company acquired a passive minority stake in Kingsdown.
This proposed transaction highlights Somnigroup's ambition to expand its footprint in the sleep products industry by integrating Leggett & Platt's capabilities and assets, while offering both sets of shareholders strategic and financial benefits. The all-stock nature of the deal underlines the focus on long-term growth and collaboration, rather than immediate cash returns.
Source: Furniture Today
