Leggett & Platt (NYSE:LEG) climbed 8% on Monday after Somnigroup International (NYSE:SGI) announced a proposal to acquire the company through an all-stock transaction.
Leggett & Platt shares traded at $11.06 in early action, up from Friday’s close of $10.14, as the market reacted to a potential deal that would grant Leggett & Platt investors Somnigroup common stock valued at $12.00 per share.
According to Somnigroup, the bid reflects a 30.3% premium to Leggett & Platt’s average closing price over the past 30 sessions. The offer places the company’s valuation at levels last seen in December 2024.
“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,” said Scott Thompson, Chairman and CEO of Somnigroup.
Under the terms outlined, Leggett & Platt would retain operational independence within the Somnigroup portfolio, similar to other subsidiaries such as Mattress Firm, Tempur Sealy and Dreams. The stock-for-stock structure would give current Leggett & Platt shareholders the opportunity to benefit from future expansion on a tax-deferred basis.
Somnigroup has asked Leggett & Platt’s board to respond by December 22. The two companies already have a long-standing commercial relationship, with Leggett & Platt serving as a supplier to Somnigroup for many years.
Any final transaction would need regulatory clearance and other standard approvals, though it would not require a shareholder vote from Somnigroup investors.