Leggett & Platt to be acquired by Somnigroup; Q1 sales down 10%, EBIT falls $18M

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 7, 2025 · ~2 min read

Key Changes

• high

  Somnigroup merger announced in April 2026 for 0.1455 shares per Leggett share, giving current holders ~9% of combined entity. Deal restricts Leggett from borrowing above $150M, raising dividends more than $0.01/year, or repurchasing shares without buyer consent. Expected close by year-end 2026.

  MD&A: Somnigroup Merger Agreement verify on EDGAR →
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  Q1 2026 sales fell 10% to $918M (half from divestitures), EBIT dropped $18M to $45M, and operating cash flow swung from +$7M to -$56M year-over-year. Three reporting units (Bedding, Home Furniture, Work Furniture) now have fair value cushions under 50% after $676M in 2024 goodwill impairments.

  MD&A: Financial Performance verify on EDGAR →
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  China tax authorities issued $24M in withholding tax assessments alleging beneficial owner requirement failures. Company is contesting through administrative appeals and has not accrued any expense, but acknowledges adverse outcome could materially harm results.

  MD&A: China Tax Assessments verify on EDGAR →