Leggett & Platt (LEG) investor relations material

Deal rationale and strategic fit

• Advances vertical integration, enabling closer collaboration between component engineering, mattress design, and consumer trends for accelerated innovation cycles and cost-effective, consumer-centric products.

• Expands addressable markets beyond bedding into diversified industries, reducing reliance on any single category or geography and lessening overall business volatility.

• Strengthens global scale, omnichannel reach, and portfolio of trusted brands, leveraging a nearly 50-year partnership and strong cultural alignment.

• Leverages Leggett & Platt's expertise in bedding components and diversified manufacturing.

• Positions the combined company for industry recovery, long-term growth, and enhanced value delivery.

Financial terms and conditions

• All-stock transaction valued at approximately $2.5 billion based on Somnigroup's closing share price on April 10, 2026.

• Leggett & Platt shareholders receive 0.1455 shares of Somnigroup for each share owned, resulting in about 9% ownership of the combined company on a fully diluted basis.

• Leggett & Platt's existing long-term bond debt will remain in place post-transaction.

• Transaction expected to be accretive to adjusted EPS before synergies in the first year post-close.

• Expected to lower net financial leverage and increase financial flexibility.

Synergies and expected cost savings

• Anticipated $50M annual run-rate EBITDA synergies, with $10M realized in the first year, mainly from sourcing, operations, and product innovation.

• Synergies to be fully realized over three years.

• Integration of component engineering and mattress design to drive cost-effective product development.