Somnigroup Proposes $12 Per Share Acquisition of Leggett & Platt
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
- Acquisition Proposal: Somnigroup has proposed an all-stock acquisition of Leggett & Platt at $12 per share, representing a 30% premium over the unaffected 30-day average price, aiming to deliver long-term value growth for shareholders of both companies through the merger.
- Due Diligence Progress: The Board of Directors of Leggett & Platt has authorized discussions and entered into a non-disclosure agreement with Somnigroup to facilitate due diligence, laying the groundwork for a potential transaction and indicating rising market interest in the deal.
- Advisory Team: Somnigroup has engaged Goldman Sachs as its financial advisor and Cleary Gottlieb Steen & Hamilton LLP as its legal advisor, ensuring the transaction's smooth execution while meeting all necessary legal and financial requirements, reflecting the seriousness of the proposed deal.
- Transaction Conditions: The completion of the proposed transaction is contingent upon customary closing conditions, including Leggett & Platt shareholder approval, with Somnigroup indicating it will not comment further on market speculation until the deal is finalized, highlighting the uncertainty and complexity involved in the transaction.
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Analyst Views on LEG
Wall Street analysts forecast LEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEG is 12.00 USD with a low forecast of 11.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 11.710
Low
11.00
Averages
12.00
High
13.00
Current: 11.710
Low
11.00
Averages
12.00
High
13.00
About LEG
Leggett & Platt, Incorporated is a diversified manufacturer that designs and produces a variety of engineered components and products that can be found in homes and automobiles. Its segments include Bedding Products, Specialized Products and Furniture, Flooring & Textile Products. Bedding Products segment supplies a variety of components and machinery used by bedding manufacturers, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated into the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to its own operations and to external customers. Specialized Products segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. Furniture, Flooring & Textile Products segment supplies a range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Leggett & Platt to Release Q4 and Full Year Earnings on February 11, 2026
- Earnings Release Schedule: Leggett & Platt will release its fourth quarter and full year earnings on February 11, 2026, showcasing the company's performance across various markets and future outlook.
- Conference Call Timing: The company will hold a conference call on February 12, 2026, at 8:30 a.m. ET to discuss earnings results and market conditions, which is expected to attract investor interest.
- Webcast Availability: The conference call will be webcast through the Investor Relations section of the company's website, allowing investors to access real-time information and participate in discussions.
- Financial Information Release: Earnings and related financial information will be posted on February 11, ensuring investors have the necessary background material to understand the financial performance ahead of the call.
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Somnigroup (SGI) Proposes All-Stock Acquisition of Leggett & Platt (LEG) at $12 per Share, 30% Premium
- Acquisition Proposal: Somnigroup has proposed an all-stock acquisition of Leggett & Platt at $12 per share, which represents a 30% premium over the unaffected 30-day average price, providing Leggett shareholders with fair value and an opportunity to participate in the future growth of the combined entity.
- Market Reaction: Following the announcement of the acquisition intention on December 1, Leggett & Platt's shares surged, reaching $92.7 in premarket trading, indicating a positive market response and expectations for the potential of future integration.
- Earnings Guidance Increase: Somnigroup raised its 2025 EPS guidance to $2.60-$2.75 after the acquisition proposal, suggesting that synergy gains from the Mattress Firm integration are accelerating, thereby enhancing its financial outlook.
- Shareholder Interests: While Somnigroup's offer is viewed by some analysts as unfair, it is still seen as a potential lifeline for Leggett shareholders, reflecting the market's complex perspective on the acquisition and the opportunity for shareholders to engage in future growth.
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