Dec 1 (Reuters) - Mattress manufacturer Somnigroup International said on Monday it had submitted a proposal to buy Leggett & Platt in an all-stock deal that valued the furniture and bedding maker at
Somnigroup Offers $1.63 Billion Stock Deal for Leggett & Platt
Dec 1 (Reuters) - Mattress manufacturer Somnigroup International said on Monday it had submitted a proposal to buy Leggett & Platt in an all-stock deal that valued the furniture and bedding maker at about $1.63 billion.
Somnigroup, which had sent a letter to the Carthage, Missouri-based company's board, said shareholders would get a Somnigroup common stock with a market value of $12 for every share of Leggett & Platt common stock.
This offer represents a 17% premium to the last closing price of Leggett & Platt, whose shares were up about 14% in premarket trading.
Leggett & Platt has a market capitalization of $1.39 billion, according to data compiled by LSEG.
The company confirmed receiving Somnigroup's "unsolicited, non-binding proposal" and said its board will review the offer with its independent financial and legal advisers.
Leggett & Platt added that Somnigroup did not engage with it regarding the proposal prior to November 30.
As part of the deal, Leggett & Platt would operate independently under Somnigroup's umbrella, with most of its management team retained, Somnigroup said.
Leggett & Platt has been requested to respond to the proposal by December 22.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shreya Biswas)
