Leggett & Platt Surges on $1.39 Billion Unsolicited Bid from Somnigroup
The all-stock offer values the manufacturing giant at a 17% premium, testing the board of the recently struggling Dividend Aristocrat.
Shares of Leggett & Platt (NYSE: LEG) jumped in early trading after Somnigroup International Inc. launched an unsolicited, all-stock proposal to acquire the diversified manufacturer in a deal valuing the company at approximately $1.39 billion.
The offer, disclosed Monday, values Leggett & Platt at $12.00 per share, representing a 17% premium to the stock's closing price on Friday and a 30.3% premium over its 30-day average. The news sent Leggett & Platt's stock climbing toward the offer price, trading up around 1.2% to $10.26 in the morning session, as investors weighed the seriousness of the bid against potential board resistance.
Somnigroup, a private investment firm with interests in the specialty materials sector, framed the proposal as a move to create significant strategic advantages while allowing Leggett & Platt shareholders to participate in the future growth of the combined entity through a tax-deferred structure. The firm's board has unanimously authorized the proposal.
“Leggett & Platt has been an important supplier to our Company for many years,” said Scott Thompson, Chairman and CEO of Somnigroup, in a press release. “This proposal would deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform.”
The bid places a spotlight on Leggett & Platt, a 141-year-old company based in Carthage, Missouri, known for its engineered components used in bedding, furniture, and automotive seating. A member of the S&P 500 Dividend Aristocrats, the company has faced significant headwinds recently, including weakening demand in its core markets and pressure on profitability. Earlier this year, the company reduced its dividend for the first time in over 50 years, a move that signaled deep structural challenges and sent its stock price to multi-year lows.
The stock's 52-week trading range of $6.41 to $12.46 highlights the depressed valuation that likely made it an attractive target for an acquirer like Somnigroup. The offer price of $12.00 sits near the top of that range, presenting shareholders with a potentially welcome exit after a difficult period.
Under the terms of the proposal, Somnigroup stated that Leggett & Platt would maintain independent operations, retaining its current management team, employees, and a significant presence in its Missouri headquarters. The offer is not subject to any financing contingencies, a detail meant to signal a high degree of certainty to Leggett & Platt's board and shareholders.
“We believe this is a unique opportunity to deliver significant value to Leggett & Platt shareholders and better position a combined company to drive future shareholder value,” Thompson added in the release. “We seek to work with you on a friendly basis to complete this transaction successfully and expeditiously.”
The unsolicited nature of the bid now puts the decision squarely in the hands of Leggett & Platt's board of directors. The company has not yet issued a formal response to the proposal. Somnigroup has requested a reply by December 22, 2025, setting a three-week timeline for a decision that could reshape the future of the industrial stalwart. Investors will be closely watching for the board's recommendation, any potential defensive maneuvers, or the emergence of a rival bidder.