Somnigroup Proposes to Acquire Leggett & Platt in All-Stock Transaction

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].