Somnigroup International Inc. said it has completed the acquisition of Leggett & Platt Inc. in an all-stock deal valued at approximately $2.3 billion, based on Somnigroup’s closing share price on August 26, 2026.
Under the terms of the transaction, Leggett & Platt shareholders received 0.1455 shares of Somnigroup common stock for each share held. Following the deal, former Leggett & Platt shareholders collectively own about 9% of the combined company on a fully diluted basis. The acquisition includes Leggett & Platt’s existing indebtedness and will be presented as a new reporting segment within Somnigroup, with intersegment sales eliminated in consolidated reporting.
The combined group now operates more than 170 manufacturing facilities across 37 countries and employs over 36,000 people. Somnigroup said the deal reduced its net financial leverage by roughly 0.2 times to about 2.8 times adjusted EBITDA at closing. The company expects to further trim leverage toward the midpoint of its target range of 2.0 to 3.0 times adjusted EBITDA by the end of the year.
Somnigroup raised its expected annual run-rate synergies to $75 million, up from an initial estimate of $50 million. The transaction also introduces approximately $50 million in annualized non-cash expenses from fair-value adjustments to the acquired business, primarily affecting cost of goods sold, and about $10 million in annualized non-cash expenses from fair-value adjustments to acquired bonds, impacting interest expense.
Somnigroup was advised by Goldman Sachs & Co. LLC on financial matters and Cleary Gottlieb Steen & Hamilton LLP on legal counsel. Leggett & Platt received financial advisory services from J.P. Morgan Securities LLC and legal counsel from Latham & Watkins LLP.
The company plans to discuss the transaction on a conference call scheduled for September 2, 2026.
