Somnigroup, Global Mattress Leader, Acquires Leggett & Platt For $2.5 Billion

The global mattress leader Somnigroup International has signed a final agreement to acquire Leggett & Platt through a stock-for-stock transaction, with a value of approximately $2.5 billion, based on Somnigroup's closing price on April 10.

The transaction is expected to close by the end of 2026, subject to customary closing conditions, including approval by Leggett & Platt shareholders and relevant regulatory approvals.

Upon completion of the transaction, Leggett & Platt is expected to operate as an independent business unit under Somnigroup, similar to Tempur Sealy, Mattress Firm, and Dreams, and will continue to retain its headquarters in Carthage, Missouri, USA. Karl Glassman, Chairman and CEO of Leggett & Platt, will continue to lead the company and assist with the transition of the new CEO.

Somnigroup and Leggett & Platt have collaborated for nearly 50 years to drive innovation in the bedding market. The two parties anticipate that this merger will further enhance their ability to deliver innovative bedding products.

In 2025, the combined net sales of the two companies are expected to be approximately $11.2 billion. The merged company is projected to operate 175 manufacturing facilities across 36 countries and employ over 36,000 people globally. The merged company stated it will continue to honor existing supply agreements between Leggett & Platt and its bedding industry customers.

Somnigroup Chairman and CEO Scott Thompson said, "We are very honored that Leggett & Platt has joined Somnigroup. The strong engineering capabilities, diversified end users, and solid cash flow of Leggett & Platt will significantly enhance our global platform strength."

This acquisition aligns with our vertical integration strategy, which aims to drive innovation, create value for customers, and enhance shareholder value. By bringing a successful supplier partner into the group, we can deliver differentiated, consumer-centric innovative products more quickly. This transaction underscores our commitment to disciplined capital allocation focused on creating long-term shareholder value.

Karl Glassman added, "We are pleased to have reached this agreement with Somnigroup, a client and partner we have long valued. This transaction allows Leggett & Platt's shareholders to participate in the future growth and value creation of this global leader on a tax-deferred basis."