Leggett & Platt Shares Surge On Somnigroup Acquisition Proposal

Leggett & Platt, Incorporated (NYSE:LEG) shares are trading higher after it received a proposal from Somnigroup International Inc. (NYSE:SGI) to acquire all shares in an all-stock transaction.

AS per the terms, LEG shareholders would receive Somnigroup stock valued at $12.00 per LEG share, based on a fixed exchange ratio.

The proposal represents a 30.3% premium to LEG's 30-day average closing price, a level not seen since December 2024.

Somnigroup CEO Scott Thompson added, “This proposal would deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform, while also being accretive before synergies to all Somnigroup shareholders.”

As of Sept. 30, Somnigroup’s cash and cash equivalents stood at $100.2 million.

Recent Earnings Release

In October, Leggett & Platt reported third-quarter adjusted EPS of $0.29, in line with expectations, while sales of $1.036 billion beat the consensus of $1.025 billion.

The company narrowed its FY25 guidance, with adjusted EPS now $1.00–$1.10 (vs. street view of $1.05) and sales of $4.00 billion–$4.10 billion (vs. consensus of $4.091 billion), down from prior ranges of $1.00–$1.20 and $4.00 billion–$4.30 billion, respectively.

Price Action: LEG shares are trading higher by 10.58% at $11.34 premarket at the last check on Monday.

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