Somnigroup has agreed to acquire Leggett & Platt, a major supplier of furniture components, in a deal valued at approximately $2.5 billion through an all-stock transaction, the companies announced.

The acquisition represents a significant consolidation move in the furniture manufacturing industry, with Somnigroup positioning the deal as part of its vertical integration strategy. The company stated that the transaction would enable closer collaboration between component engineering and mattress design operations.

Leggett & Platt has been a key supplier of springs, mechanisms, and other components used in furniture and bedding products. The acquisition would bring these manufacturing capabilities in-house for Somnigroup, potentially reducing supply chain dependencies and costs.

The all-stock structure of the deal means Leggett & Platt shareholders will receive Somnigroup shares rather than cash as consideration for their holdings. Financial terms beyond the overall valuation were not immediately disclosed.

Both companies' boards have approved the transaction, though it remains subject to customary closing conditions including regulatory approvals and shareholder votes. The companies did not provide a specific timeline for completing the acquisition.