Carthage, MO, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Leggett & Platt (NYSE:LEG), a diversified manufacturer of engineered products serving several major markets, will release fourth quarter and full year earnings results on Wednesday, February 11, 2026 after the market closes, and hold its quarterly conference call to discuss fourth quarter and full year results, annual guidance, market conditions, company initiatives, and related matters on Thursday, February 12, 2026, at 8:30 a.m. Eastern Time (7:30 a.m. Centr ...

Leggett & Platt has opened the door to a possible takeover by Somnigroup International despite knocking back the bedding company's roughly $1.63 billion offer as too low. ...

Core Viewpoint - Leggett & Platt's Board of Directors is engaging in discussions with Somnigroup regarding a potential acquisition, following a review of Somnigroup's unsolicited proposal, which was deemed to undervalue the company [2][3]. Group 1: Acquisition Discussions - Leggett & Platt has entered into a non-disclosure agreement and a 6-month standstill with Somnigroup to facilitate due diligence and explore a potential transaction [1]. - Somnigroup's proposal, dated December 1, 2025, offered $12 per share, which the Board believes undervalues Leggett & Platt [2]. - The Board is committed to pursuing actions that are in the best interests of the company and its shareholders [3]. Group 2: Advisory Support - J.P. Morgan Securities LLC is acting as the financial advisor for Leggett & Platt, while Latham & Watkins LLP is serving as the legal advisor [5]. Group 3: Company Overview - Leggett & Platt is a diversified manufacturer with a history of 143 years, producing a wide range of engineered components and products for homes and automobiles [6].

Core Viewpoint - Shares of Leggett & Platt, a US furniture and bedding manufacturer, experienced a significant increase of nearly 15% following the announcement that Somnigroup International submitted an offer to acquire the company in an all-stock deal [1] Company Summary - Leggett & Platt's stock price surged almost 15% on Monday due to the acquisition interest from Somnigroup International [1] - The acquisition proposal is structured as an all-stock deal, indicating a strategic move by Somnigroup International to expand its market presence through Leggett & Platt [1] Industry Summary - The furniture and bedding manufacturing sector is witnessing consolidation activity, as evidenced by Somnigroup International's offer to acquire Leggett & Platt [1] - This acquisition interest reflects ongoing trends in the industry where companies seek to enhance their competitive positioning through mergers and acquisitions [1]

Group 1 - Somnigroup International has proposed to acquire Leggett & Platt in an all-stock deal valued at approximately $1.63 billion [1]

Core Viewpoint - Leggett & Platt has received an unsolicited acquisition proposal from Somnigroup International Inc. for an all-stock transaction, which is non-binding and subject to due diligence [1][2]. Company Overview - Leggett & Platt (NYSE: LEG) is a diversified manufacturer with a 142-year history, producing engineered components and products for homes and automobiles, including bedding components, automotive seat systems, furniture components, flooring underlayment, and hydraulic cylinders [4]. Proposal Details - Somnigroup's proposal includes an exchange ratio that is yet to be agreed upon and was not discussed with Leggett & Platt prior to November 30, 2025 [1]. - The Leggett & Platt Board of Directors will review the proposal in consultation with independent financial and legal advisors to determine the best course of action for the company and its shareholders [2]. Financial Advisory - J.P. Morgan Securities LLC is acting as the financial advisor, while Latham & Watkins LLP is serving as the legal advisor for Leggett & Platt regarding the proposal [3].

Core Viewpoint - Somnigroup International Inc. has proposed an all-stock acquisition of Leggett & Platt Inc., offering a 30.3% premium to Leggett & Platt shareholders based on recent trading prices, which has not been achieved since December 2024 [1][4][7]. Proposal Details - The proposal entails that Leggett & Platt shareholders would receive shares of Somnigroup common stock valued at $12.00 for each share of Leggett & Platt [1][4]. - The all-stock structure allows Leggett & Platt shareholders to participate in the future growth of the combined company on a tax-deferred basis [2][5]. Strategic Rationale - The merger is expected to create significant strategic advantages and efficiencies for both companies, enhancing their market positions [6]. - Somnigroup has a long-standing commercial relationship with Leggett & Platt, which is anticipated to continue post-merger [6][8]. Operational Independence - Leggett & Platt would maintain operational independence under Somnigroup, with its leadership team retaining significant autonomy [8]. - The merger is expected to provide Leggett & Platt with a reliable customer base and greater growth opportunities, supported by Somnigroup's strategic backing [8]. Transaction Conditions - The transaction is subject to customary closing conditions, including regulatory approvals, but will not require financing contingencies or approval from Somnigroup's shareholders [9][12]. - The proposal has been unanimously authorized by Somnigroup's Board of Directors, and the company is prepared to conduct due diligence and finalize agreements promptly [10][11].

Core Insights - Leggett & Platt's Q3 2025 earnings report showed a sales decline of 6% year over year to $1.04 billion, although it exceeded the Zacks Consensus Estimate by 1.2% [2] - Adjusted EPS of 29 cents missed estimates by 3.3% and fell 9% year over year, primarily due to volume declines, despite some support from metal margin expansion [3] - The company reaffirmed its 2025 guidance, projecting sales between $4 billion and $4.1 billion, reflecting a year-over-year decline of 6-9% [8] Financial Performance - Sales in the Bedding Products segment fell 10%, with a 13% volume drop, but adjusted EBIT margin improved by 220 basis points to 6.6% due to metal margin expansion [4] - Specialized Products saw a 7% sales decline, with organic sales down 2%, while the adjusted EBIT margin slightly increased to 9.7% [4] - Gross profit was $194 million, down 3% year over year, with gross margin remaining flat; adjusted EBIT was $73 million, down 4% year over year, but adjusted EBIT margin rose by 10 basis points to 7.0% [6] Balance Sheet & Cash Flow - At the end of Q3, the company had $461 million in cash and $974 million in total liquidity, with long-term debt at $1.5 billion, down $296 million sequentially [7] - Operating cash flow improved to $126 million, up 32% year over year, driven by better working capital management [7] Market Position & Outlook - Leggett & Platt has a subpar Growth Score of D and a Momentum Score of F, but a strong Value Score of A, placing it in the top quintile for value investors [9] - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [10]

Core Insights - Leggett & Platt, Incorporated (LEG) is undergoing restructuring and divesting parts of its business due to declining competitiveness and significant debt levels [1]. Group 1: Company Overview - Leggett & Platt is facing challenges related to its competitiveness in the market, prompting a strategic restructuring [1]. - The company has been identified as having a substantial debt burden, which is impacting its operational efficiency [1]. Group 2: Investment Opportunities - The analysis suggests that there may be potential investment opportunities arising from the company's restructuring efforts and business divestitures [1]. - The service "Value in Corporate Events" aims to provide actionable insights on major corporate events, including those related to Leggett & Platt [1].

Industry Overview - Consumer discretionary businesses are sensitive to economic cycles, leading to underperformance during macroeconomic uncertainty, with a 14.8% return over the past six months compared to the S&P 500's 19.5% gain [1] Company Analysis: Caesars Entertainment (CZR) - Caesars Entertainment has a market cap of $3.91 billion and operates casinos, hotels, and resorts [3] - The stock is trading at $19.16 per share, reflecting a high forward P/E ratio of 56.2x, raising concerns about its valuation [5] Company Analysis: Leggett & Platt (LEG) - Leggett & Platt has a market cap of $1.18 billion and is a diversified manufacturer [6] - The stock price of $8.72 indicates a forward P/E ratio of 8.1x, suggesting caution in investment [8] Company Analysis: Sphere Entertainment (SPHR) - Sphere Entertainment has a market cap of $2.58 billion and is known for its Las Vegas venue [9] - The company has experienced flat sales over the last two years, indicating a lack of consumer excitement [11] - A low free cash flow margin of 1.2% constrains its growth and capital return capabilities [11] - The net-debt-to-EBITDA ratio of 7x raises concerns about its ability to secure additional capital [11] - Sales stagnation over the last five years, with a 12.7% annual decline in earnings per share, highlights the need for new growth strategies [12] - The company has shown lackluster revenue growth of 8.5% annually over the last five years, indicating competitive disadvantages [13]