Somnigroup Completes Acquisition of Leggett & Platt, Strengthening Supply Chain and Financial Position
On August 26, Somnigroup International (NYSE: SGI) completed its acquisition of Leggett & Platt in an all-stock deal valued at approximately $2.3 billion based on pre-close pricing. The merger combines a bedding company with one of the oldest components manufacturers to create a vertically integrated entity controlling more than 170 manufacturing facilities across 37 countries and employing over 36,000 people. The transaction is expected to improve Somnigroup’s financial health, reducing net leverage from roughly 2.99 times adjusted EBITDA in the second quarter of 2026 to around 2.8 times at closing. Management has also raised synergy estimates from $50 million annually to $75 million, signaling stronger-than-expected integration opportunities. Despite a challenging top-line performance with total net sales declining by 3%, Somnigroup reported strong adjusted earnings per share growth of 9.4% in Q2 and raised its full-year EPS guidance. However, the company faces headwinds including falling mattress segment sales, margin compression internationally due to commodity costs, and non-cash expenses from the acquisition.
Topics: financial performance mergers and acquisitions supply chain