Leggett & Platt Confirms Receipt of Unsolicited Proposal from Somnigroup International Inc.
Rhea-AI Summary
Leggett & Platt (NYSE: LEG) confirmed receipt on Dec 1, 2025 of an unsolicited, non-binding all-stock proposal from Somnigroup International (NYSE: SGI) to acquire all outstanding shares. The proposal's exchange ratio is stated as "to be agreed" and is subject to due diligence. The Leggett & Platt Board, with independent financial and legal advisors, will review the proposal and has not reached a decision. Shareholders are told no action is required at this time. J.P. Morgan Securities LLC is financial advisor and Latham & Watkins LLP is legal advisor to Leggett & Platt.
Positive
- Received unsolicited all-stock acquisition proposal on Dec 1, 2025
- Board engaged independent financial and legal advisors for review
- Shareholders instructed that no action is required now
Negative
- Proposal is non-binding and subject to due diligence
- Exchange ratio is unspecified ("to be agreed"), creating valuation uncertainty
- Somnigroup did not engage with Leggett before Nov 30, 2025
News Market Reaction
On the day this news was published, LEG gained 16.37%, reflecting a significant positive market reaction. This price movement added approximately $195M to the company's valuation, bringing the market cap to $1.39B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed but mostly positive moves, with LZB, MBC, TILE and AMWD up between 1.62% and 2.24%, while MLKN was slightly down 0.18%, suggesting LEG’s takeover news was more stock-specific than broad sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 01 | Takeover approach | Positive | +16.4% | Unsolicited non-binding all-stock proposal to acquire all LEG shares. |
| Dec 01 | Acquisition proposal | Positive | +16.4% | Somnigroup all-stock offer with stated premium to recent LEG trading. |
| Nov 06 | Dividend declared | Positive | -1.0% | Board declared Q4 2025 cash dividend of <b>$0.05</b> per share. |
| Oct 27 | Quarterly earnings | Positive | +0.7% | 3Q 2025 results, guidance reaffirmed and debt reduction after Aerospace sale. |
| Sep 29 | Earnings call notice | Neutral | -0.1% | Announcement of timing for Q3 2025 earnings release and conference call. |
Recent history shows a strong positive reaction to acquisition-related news and modest or slightly negative moves around routine corporate updates like dividends and scheduling announcements.
Over the last few months, Leggett & Platt has reported 3Q 2025 results with $1.0 billion sales, $0.91 reported EPS and $0.29 adjusted EPS, plus debt reduction of $296 million and an $87 million gain from an Aerospace sale. It also declared a $0.05 quarterly dividend and scheduled its Q3 earnings call. On Dec 1, 2025, Somnigroup proposed an all-stock acquisition of all outstanding LEG shares, triggering a strong positive price reaction in prior trading around this proposal theme.
Market Pulse Summary
The stock surged +16.4% in the session following this news. A strong positive reaction aligns with the clear takeover angle in this unsolicited, all-stock proposal for all outstanding shares. Prior acquisition-related headlines for Leggett & Platt saw a 16.37% move, suggesting investors have been highly sensitive to strategic and M&A developments. However, with terms described as non-binding and “to be agreed,” and subject to due diligence, there remained uncertainty that could affect how durable any sharp upside proved over subsequent sessions.
Key Terms
all-stock transaction financial
AI-generated analysis. Not financial advice.
No Shareholder Action Required at This Time
The Leggett & Platt Board of Directors, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the Company and its shareholders.
Leggett & Platt does not intend to comment further on Somnigroup's proposal until the Board has completed its review. Leggett & Platt shareholders do not need to take any action at this time.
J.P. Morgan Securities LLC is serving as financial advisor to Leggett & Platt and Latham & Watkins LLP is serving as its legal advisor.
FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 142-year-old Company is a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.
FORWARD LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by the context in which they appear or words such as "expect," "anticipated," "estimate," and "guidance," including, but not limited to statements regarding our response to Somnigroup's offer. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks include: risks relating to potential strategic transactions; increased trade costs, including tariffs; regarding the Restructuring Plan, the possibility that estimates may change, our ability to timely implement the Plan, receive anticipated benefits, and timely receive expected proceeds from real estate sales, our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between
MEDIA CONTACT: Joele Frank, Wilkinson Brimmer Katcher
Tim Lynch / Eliza Rothstein
(212) 355-4449
INVESTOR CONTACT: Investor Relations
Cassie J. Branscum, Vice President
Katelyn J. Pierce, Analyst
(417) 358-8131 or invest@leggett.com
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SOURCE Leggett & Platt Incorporated
FAQ
What did Leggett & Platt (LEG) announce on December 1, 2025?
Do Leggett & Platt (LEG) shareholders need to take action now?
Is the Somnigroup (SGI) offer for LEG finalized and numeric?
Who is advising Leggett & Platt (LEG) on the unsolicited proposal?
When did Somnigroup first engage with Leggett & Platt about the proposal?
