Somnigroup International has offered to acquire Leggett & Platt in an all-stock deal valued at approximately $1.63 billion. If completed, the transaction would integrate the adjustable bed frame and mattress spring manufacturer into Somnigroup's bedding business portfolio.

Somnigroup, formed following Tempur-Sealy's acquisition of Mattress Firm, proposed buying all outstanding shares of Leggett & Platt at $12 per share on Monday. The mattress maker noted this represents a 30% premium over Leggett & Platt's 30-day average closing price.

The all-stock structure would allow Leggett & Platt shareholders to participate in the combined company's future growth potential while deferring tax obligations, according to Somnigroup.

In premarket trading, Leggett & Platt's shares surged 13% to $11.59 per share.

Leggett & Platt stated it would carefully review and evaluate the unsolicited proposal to determine the course of action that best serves the company and its shareholders.

Headquartered in Carthage, Missouri, Leggett & Platt manufactures furniture, engineered components, and products for homes, offices, automobiles, and commercial aircraft. Its product lines include mattress springs, specialty foam, adjustable bed frames, and machinery related to bedding products.

Scott Thompson, CEO of Somnigroup, noted that Leggett & Platt has been a key supplier to the company for years.

Under the proposed deal, Leggett & Platt would operate independently within Somnigroup, whose current brand portfolio includes Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy’s.

Somnigroup highlighted benefits for Leggett & Platt, including gaining Tempur-Sealy as a strong, stable customer, reducing capital costs, and receiving strategic support. The company also expects to retain most of Leggett & Platt's management team and workforce while maintaining its significant operations in Carthage.