Leggett & Platt Stock Jumps 12% on $2.5B All-Stock Somnigroup Deal
Leggett & Platt agreed to a $2.5B all-stock acquisition by Somnigroup International, boosting shares over 12% with shareholders receiving 0.1455 Somnigroup shares for 9% of the combined entity. The company is set to report 1Q EPS of $0.26 and revenue of $946.79M on May 7 without a conference call.
1. Acquisition by Somnigroup International
Leggett & Platt agreed to be acquired by Somnigroup in an all-stock transaction valued at $2.5 billion. Under the deal, each share of Leggett & Platt will be exchanged for 0.1455 Somnigroup shares, granting legacy shareholders 9% ownership in the combined company.
2. Upcoming Earnings Report
Leggett & Platt is scheduled to release first-quarter results on May 7, with analysts forecasting EPS of $0.26 and revenues of $946.79 million. The company will not host a conference call to discuss the results, which is atypical for a firm of its size.
3. Market Reaction and Valuation
Following the acquisition announcement, Leggett & Platt shares rallied more than 12%. The company's current valuation metrics include a price-to-earnings ratio of 6.75, a price-to-sales ratio of 0.38, and a debt-to-equity ratio of 1.62.