Somnigroup completes $2.3 billion Leggett & Platt combination

Somnigroup completed its all-stock combination with Leggett & Platt, valuing the deal at about $2.3 billion including indebtedness.

• Leggett & Platt holders received 0.1455 Somnigroup shares per share, ending with about 9% of the combined company fully diluted.
• Net leverage at close was about 2.8x adjusted EBITDA, down about 0.2x, with a target move toward 2.0x–3.0x by year-end.
• Annual run-rate synergy target increased to $75 million from $50 million.
• Leggett & Platt becomes a new segment; expected annualized non-cash expense includes about $50 million in COGS and $10 million in interest expense.