Dallas-based Somnigroup International (NYSE: SGI) has signed a definitive agreement to acquire Leggett & Platt  (NYSE: LEG) in an all-stock deal valued at around $2.5 billion, based on Somnigroup’s closing share price on April 10, 2026.

Somnigroup was created in February 2024 via Tempur Sealy International’s $5 billion acquisition of Mattress Firm, and has since set up its headquarters within The Crescent complex in Uptown Dallas. Dallas Innovates first wrote about Somnigroup’s proposal in December, when the deal price was slated at a considerably lower $1.6 billion. 

Founded in 1883, Leggett & Platt has collaborated with Somnigroup’s companies for nearly 50 years as a leading supplier. The 143-year-old company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.

Driving ‘innovation and value’—with combined 2025 net sales of $11.2B

Somnigroup Chairman and CEO Scott Thompson said 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,” he added in a statement. “By bringing a successful supply partner into our group, we accelerate our ability to deliver differentiated, consumer–centric innovation.”

Leggett & Platt Chairman and CEO Karl Glassman said that “for more than 140 years, we have provided our customers with innovation and quality,” adding in a statement, “I believe this combination positions us to continue that track record and deliver compelling strategic and financial value for our customers, employees and shareholders.”

Both companies bring a lot to the table. The combined company generated 2025 net sales of approximately $11.2 billion, approximately $1.7 billion of adjusted EBITDA, and $1.1 billion of operating cash flow, Somnigroup said. Together, they’re expected to operate 175 manufacturing facilities across 36 countries worldwide, supported by a global workforce of more than 36,000 employees. 

More on the deal

Under the terms of the deal, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they own. As a result of the transaction, Leggett & Platt’s shareholders will own around 9% of the combined company on a fully diluted basis, Somnigroup said. The agreement has been unanimously approved by the boards of both Somnigroup and Leggett & Platt.

The deal is expected to close by year-end 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt’s shareholders and receipt of applicable regulatory approvals. The transaction doesn’t require Somnigroup shareholder approval, Somnigroup noted.

Following the deal’s close, Leggett & Platt is expected to operate as a separate business unit within Somnigroup, similar to Tempur Sealy, Mattress Firm, and Dreams, and to maintain its offices in Missouri. Glassman will continue to lead Leggett & Platt following the closing date and will assist with a seamless transition to a new CEO of the Leggett & Platt business unit within twelve months of the closing date, Somnigroup said.

Goldman Sachs is serving as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton is serving as legal counsel to Somnigroup. J.P. Morgan Securities is serving as exclusive financial advisor and Latham & Watkins is serving as legal counsel to Leggett & Platt.

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