Somnigroup International (NYSE: SGI) is trading higher today after it announced a signed definitive agreement to acquire Leggett & Platt (NYSE: LEG) in an all-stock transaction valued at approximately $2.5 billion, using Somnigroup’s closing share price from April 10, 2026 as the reference for the valuation. The announcement removes uncertainty around earlier proposal-stage talks and puts a concrete structure, valuation, and timeline around the deal. (stocktitan.net)

Under the merger agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each LEG share they own. The companies said they expect Leggett & Platt shareholders to own about 9% of the combined company on a fully diluted basis, and they are targeting closing by year-end 2026, subject to customary conditions including Leggett & Platt shareholder approval and regulatory approvals. (stocktitan.net)

Somnigroup said the transaction is expected to be accretive to adjusted EPS before synergies in the first year post-close and to lower net financial leverage, improving financial flexibility. The companies also outlined expected cost synergies with an anticipated net positive impact on adjusted EBITDA of $50 million on a fully implemented annual run-rate basis, including about $10 million of adjusted EBITDA benefit in the first twelve months after closing. (stocktitan.net)

Next catalysts include regulatory and shareholder-approval milestones and any updates on integration planning, especially around synergy capture pace and capital structure. Investors will also watch whether Somnigroup provides updated pro forma targets or guidance as the transaction progresses toward the stated year-end 2026 closing window. (stocktitan.net)