Somnigroup to Buy Leggett & Platt for $2.5B

Somnigroup, the Mattress Firm parent, has agreed to acquire supplier Leggett & Platt in an all-stock transaction valued at about $2.5 billion. Both companies’ boards have approved the deal, and it is expected to close by the end of the year.

Leggett & Platt will remain a separate unit after the merger, with its headquarters in Carthage, Missouri. The companies expect synergy opportunities mainly from sourcing, operations, and product innovation, targeting a positive impact of $50 million in adjusted EBITDA over three years, including about $10 million in the first 12 months post-closing. Somnigroup CEO Scott Thompson said Leggett & Platt’s engineering capabilities and cash-generating profile enhance Somnigroup’s global platform.