Somnigroup Responds to Leggett & Platt Transaction Proposal
Written by Emily J. Thompson, Senior Investment Analyst
Somnigroup (SGI) issued the following statement in response to the announcement by Leggett & Platt (LEG) that its board of directors has authorized discussions and entered into a customary non-disclosure agreement to facilitate due diligence and discussions with Somnigroup: "We welcome the Board's willingness to engage in discussions with us and we look forward to conducting customary due diligence. Somnigroup remains committed to pursuing a transaction that will deliver substantial value to shareholders of both companies. However, as we advised Leggett & Platt in declining to revise our proposal in advance of customary due diligence, we believe that our proposed all-stock transaction for value of $12 per share, as previously announced on December 1, 2025, represents fair value for Leggett & Platt. Our proposal offers Leggett & Platt shareholders a 30% premium to the unaffected 30-day average price of Leggett & Platt's shares as of that date, and an opportunity to participate in the future growth of the combined company."
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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: 11.900
Low
11.00
Averages
12.00
High
13.00
Current: 11.900
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.
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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- Strong Financial Performance: The company recently reported a 14% growth in adjusted earnings per share and record cash flow of $719 million, sufficiently supporting its dividend increase and boosting investor confidence.
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