Somnigroup International Inc. (NYSE: SGI) is trading sharply higher as investors react to the company’s April 13, 2026 announcement of a definitive agreement to acquire Leggett & Platt (NYSE: LEG) in an all-stock transaction valued at approximately $2.5 billion. The deal has become the dominant near-term catalyst, with traders focusing on supply-chain control, margin upside, and the prospect of faster earnings growth as Somnigroup expands deeper into components manufacturing.

Under the merger agreement dated April 13, 2026, each Leggett & Platt share will be converted into 0.1455 shares of Somnigroup stock (cash paid in lieu of fractional shares). Leggett & Platt shareholders are expected to own roughly 9% of the combined company on a fully diluted basis, and the companies are targeting a close by year-end 2026, subject to customary conditions including shareholder and regulatory approvals.

The transaction centers on bringing a major supplier inside the corporate umbrella, which can reduce input volatility and improve coordination across product design, sourcing, and production. Management’s framework highlights expected net positive adjusted EBITDA impact of $50 million on a fully implemented annual run-rate basis, with about $10 million expected to benefit adjusted EBITDA in the first twelve months post-close; the companies also said the deal is expected to be accretive to adjusted EPS before synergies in the first year after closing.

Key swing factors include the shareholder vote at Leggett & Platt, regulatory review timing, and the market’s view of integration execution given Leggett & Platt is expected to operate as a separate business unit within Somnigroup. Investors will also track whether synergy capture stays on schedule and whether the all-stock structure remains attractive if SGI’s share price moves materially before closing.