Somnigroup International completed its all-stock combination with Leggett & Platt on August 26, a deal first announced April 13 and valued at roughly $2.3 billion based on Somnigroup's closing price the day before. The transaction folds a components manufacturer with nearly 140 years of history into a bedding company that already owns some of the best-known names in sleep, giving Somnigroup direct control over a piece of its own supply chain. Net leverage fell to roughly 2.8 times adjusted EBITDA at close, down about 0.2 times, and management is targeting the middle of its 2.0 to 3.0 times range by year-end. Management also lifted the annual run-rate synergy target to $75 million from an initial $50 million estimate. The combined company now runs more than 170 manufacturing facilities across 37 countries with over 36,000 employees. Three weeks before the deal closed, Somnigroup reported second-quarter 2026 results showing adjusted earnings per share up 9.4% to $0.58 even as total net sales slipped 3.0% to $1,823.5 million, with gross margin expanding to 44.8% from 44.0% and a record $236 million in operating cash flow; the company raised its full-year adjusted EPS guidance to a range of $2.85 to $3.15, roughly 11% above 2025 at the midpoint. Somnigroup expects about $50 million a year in non-cash expense from marking the acquired business up to fair value, mostly hitting cost of goods sold, plus another $10 million in non-cash interest expense from revaluing Leggett & Platt's bonds, and it hosts a business update call on September 2 to detail how the synergies get realized.
Somnigroup International Inc.Somnigroup completed its $2.3B all-stock acquisition of Leggett & Platt, cutting net leverage to ~2.8x and lifting synergy target to $75M.
Leggett & Platt IncorporatedLeggett & Platt is acquired by Somnigroup in a ~$2.3B all-stock combination, folding the 140-year-old components maker into the bedding company.
