Somnigroup Announces Completed Combination with Leggett & Platt

August 27, 2026  by Karen Parrish in Business Strategy, Industry   

The combined company today operates over 170 manufacturing facilities across 37 countries worldwide and is supported by a global workforce of more than 36,000 colleagues. 

Chairman and CEO Scott Thompson said, "Today marks an exciting milestone for Somnigroup as we complete the combination with Leggett & Platt. Building on nearly 50 years of collaboration, we are bringing together complementary businesses with shared values and a commitment to customer service and product innovation. By combining Leggett & Platt's engineering expertise and manufacturing capabilities with Somnigroup's global scale and industry-leading brands, we are fortifying our foundation for future growth and long-term value creation. The addition of Leggett & Platt deepens our vertical integration, secures a critical part of our supply chain, and adds a highly cash-generative business to our portfolio. We thank the employees of both organizations for their dedication and support throughout this process, as well as our suppliers, advisors, and shareholders for their continued partnership and confidence in our team."

Leggett & Platt Chairman and CEO Karl Glassman said, "For more than 140 years, Leggett & Platt has earned its reputation through engineering excellence, operational discipline, and an unwavering commitment to our customers, and I am incredibly proud of our teams for building that legacy. Joining Somnigroup gives our business the scale and resources to reach new markets and new opportunities, and I am confident this combination creates a stronger future for our employees, our customers, and the industry we have served for generations."

Financial Terms of the Acquisition

The combination was an all-stock transaction valued at approximately $2.3 billion based on Somnigroup's closing share price on August 25, 2026 and inclusive of Leggett & Platt's existing indebtedness. Leggett & Platt shareholders received 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they owned. Upon completion of the transaction, former Leggett & Platt shareholders own approximately 9% of the combined company on a fully diluted basis.

Financial Impact

The transaction has reduced Somnigroup's net financial leverage by approximately 0.2 times, and Somnigroup expects to further reduce its leverage towards the midpoint of its target leverage range of 2.0 to 3.0 times adjusted EBITDA by year-end. The Company has identified $75 million in annual run-rate synergies, up from its initial estimate of $50 million, and expects to provide further detail on synergy realization on its business update call.

Leggett & Platt's financial results will be presented as a new reporting segment within the Somnigroup business. Leggett & Platt's sales to Somnigroup's other reporting segments will be eliminated, with no impact to reported Leggett & Platt segment profits. Additionally, consistent with prior expectations and in accordance with GAAP, Somnigroup expects to incur approximately $50 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt business, which will primarily impact cost of goods sold, and Somnigroup expects to incur approximately $10 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt bonds, which will impact interest expense. The Company anticipates these non-cash items will be financial adjustments in accordance with the terms of its credit facility.

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

Business Update Call

The Company will hold a conference call on Sept 2, at 8:00 a.m. Eastern Time to discuss the information in this release and provide a preliminary update on its future plans.

The call will be webcast and can be accessed on the Company's investor relations website at investor.somnigroup.com. After the conference call, webcast replays will remain available on the investor relations section of the Company's website for 30 days.