Somnigroup International—which was created last February via Tempur Sealy International’s $5 billion acquisition of Mattress Firm, and which in May announced plans to open new corporate headquarters in Dallas—is proposing yet another billion-dollar deal which could see the company grow even larger.
Somnigroup Chairman and CEO Scott Thompson [Photo: Somnigroup]
Somnigroup (NYSE: SGI) is seeking to acquire Carthage, Missouri-based Leggett & Platt (NYSE: LEG) in an all-stock deal valued at around $1.6 billion. Leggett & Platt is a diversified manufacturing company that designs and produces a wide variety of engineered components and products for homes, automobiles, and other industries—with a key emphasis on bedsprings and bedding components.
Founded in 1883, Leggett & Platt is one of Somnigroup’s leading suppliers.
Somnigroup announced today that it has submitted a proposal to Leggett & Platt’s board that would see it acquire all outstanding common shares of L&P in an all-stock transaction. Under the terms of the proposed deal, Leggett & Platt shareholders would receive shares of Somnigroup common stock with a market value of $12.00 for every one share of Leggett & Platt common stock, based on a fixed exchange ratio to be agreed. The proposal offers Leggett & Platt shareholders a 30.3% premium to the average closing price of Leggett & Platt’s shares during the last 30 trading days, representing a value not achieved by LEG shares since December 2024, Somnigroup said.
Scott Thompson, chairman and CEO of Somnigroup, noted that Leggett & Platt has been “an important supplier” to his company for many years.
“This proposal would deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform, while also being accretive before synergies to all Somnigroup shareholders,” Thompson added in a statement.
Eyeing L&P as independently operating under Somnigroup’s umbrella
In Somnigroup’s letter to L&P’s board, Thompson said that as a result of the proposed acquisition, Leggett & Platt would continue to operate independently under the Somnigroup umbrella.
“Like Mattress Firm, Tempur Sealy, and Dreams, Leggett & Platt’s leadership team would enjoy significant autonomy,” Thompson wrote. “Leggett & Platt would also benefit from having a substantial and reliable customer in Tempur Sealy and greater opportunities for growth and success, all with a lower cost of capital and the strategic backing of Somnigroup.”
“Additionally, because Leggett & Platt’s business is complementary to Somnigroup’s businesses, we would expect to not only retain most of Leggett & Platt’s management team and employees, whose knowledge, experience and talent would be invaluable to the Somnigroup organization,” Thompson wrote, “but also provide them future career opportunities in the broader Somnigroup organization. We also expect to retain a significant presence in Carthage.”
Somnigroup is seeking a response to its offer from Leggett & Platt by December 22.
Somnigroup’s financial advisors in the proposed transaction are Goldman Sachs & Co. LLC and its legal advisors are Cleary Gottlieb Steen & Hamilton LLP, the company said.
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