Somnigroup International Inc. (NYSE: SGI) has completed its combination with Leggett & Platt, Incorporated in an all-stock transaction valued at approximately $2.3 billion, based on Somnigroup's closing share price on Aug. 25, 2026, and inclusive of Leggett & Platt's existing indebtedness.

Under the terms of the deal, Leggett & Platt shareholders received 0.1455 shares of Somnigroup common stock for each share of Leggett & Platt common stock held. Former Leggett & Platt shareholders now own approximately 9% of the combined company on a fully diluted basis.

The combined company operates more than 170 manufacturing facilities across 37 countries and employs more than 36,000 people globally. Leggett & Platt's financial results will be reported as a new segment within Somnigroup.

The transaction reduced Somnigroup's net financial leverage by approximately 0.2 times, bringing net leverage to approximately 2.8 times adjusted EBITDA at close. The company targets further reduction toward the midpoint of its 2.0 to 3.0 times adjusted EBITDA range by year-end.

Somnigroup raised its annual run-rate synergy target to $75 million, up from an initial estimate of $50 million. The company also expects to incur approximately $50 million in annualized non-cash expense from fair value adjustments to the acquired Leggett & Platt business, primarily affecting cost of goods sold, and approximately $10 million in annualized non-cash expense from fair value adjustments to acquired Leggett & Platt bonds, affecting interest expense.

Goldman Sachs & Co. LLC served as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to Somnigroup. J.P. Morgan Securities LLC served as exclusive financial advisor and Latham & Watkins LLP served as legal counsel to Leggett & Platt.

Somnigroup will hold a business update conference call on Sept. 2, 2026, at 8:00 a.m. Eastern Time to discuss further details, including synergy realization plans.