Leggett & Platt, Incorporated (LEG) shares jumped in premarket trading Monday after receiving an acquisition proposal from Somnigroup International Inc. (SGI). The all-stock deal would give LEG shareholders Somnigroup stock valued at $12.00 per share based on a fixed exchange ratio.

That pricing represents a 30.3% premium to Leggett & Platt's 30-day average closing price, pushing the stock back to levels not seen since December 2024. For LEG shareholders, it's a meaningful bump after a tough stretch.

Somnigroup CEO Scott Thompson framed the proposal as a win-win situation. "This proposal would deliver significant value to Leggett & Platt shareholders through a compelling premium and tax-advantaged participation in our combined platform, while also being accretive before synergies to all Somnigroup shareholders," he said.

As of September 30, Somnigroup held $100.2 million in cash and cash equivalents, providing some financial flexibility for the transaction.

Recent Performance

Back in October, Leggett & Platt reported third-quarter adjusted earnings of $0.29 per share, meeting analyst expectations. Sales came in at $1.036 billion, slightly topping the consensus estimate of $1.025 billion.

The company also tightened its full-year guidance. Adjusted EPS is now expected between $1.00 and $1.10 (compared to a street view of $1.05), while sales are projected at $4.00 billion to $4.10 billion (versus consensus of $4.091 billion). Those ranges are narrower than the previous guidance of $1.00–$1.20 for EPS and $4.00 billion–$4.30 billion for sales.

Price Action: LEG shares were trading higher by 10.58% at $11.34 in premarket trading Monday.