Somnigroup International Inc, the US owner of Tempur, Sealy and UK retailer Dreams, has submitted an unsolicited proposal to the board of directors of bedding component supplier Leggett & Platt Inc to acquire all of its outstanding common shares in an all-stock transaction.
"Leggett & Platt has been an important supplier to our Company for many years," says Scott Thompson, chairman and CEO of Somnigroup. "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."
In his letter to the board, Scott writes: "Joining Leggett & Platt with a leading bedding manufacturer and bedding retailer would unquestionably foster significant strategic advantages and efficiencies for the combined company."
He adds that Leggett & Platt would continue to operate independently under the Somnigroup umbrella, and, as is the case with Mattress Firm, Tempur Sealy and Dreams, Leggett & Platt's leadership team would enjoy "significant autonomy", and "would also benefit from having a substantial and reliable customer in Tempur Sealy and greater opportunities for growth and success, all with a lower cost of capital and the strategic backing of Somnigroup. We also expect to retain a significant presence in Carthage".
Leggett & Platt's board says it will "carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the company and its shareholders".
