Somnigroup International Inc. (SGI)

Somnigroup completed its all-stock acquisition of Leggett & Platt on 26 August 2026 2. The deal was valued at about $2.3 billion including Leggett & Platt's debt, and former Leggett & Platt shareholders own about 9 percent of the combined company 3.

The combined company operates over 170 manufacturing facilities in 37 countries with more than 36,000 colleagues, and Leggett & Platt becomes a new reporting segment 3. Somnigroup raised its yearly savings target from the combination to $75 million from $50 million 3.

The last quarter reported before the close, the second quarter of 2026, brought net sales of $1,823.5 million, down 3.0 percent, and net income of $110.9 million, up 12.0 percent 1. Mattress Firm sales fell 2.8 percent, mainly because of store closures 1.

Third-quarter results, the first to follow the close, are due before the market opens on 9 November 2026 7. Leggett & Platt's own financial statements and pro forma figures are to be filed by amendment within 71 days 2.

The company began as Tempur-Pedic, whose Tempur brand was founded in 1991 4. Its shares began trading on the New York Stock Exchange on 18 December 2003 under the symbol TPX 4.

On 18 March 2013 it completed the acquisition of Sealy, which made mattresses under the Sealy, Sealy Posturepedic, Optimum and Stearns & Foster brands 14. That purchase gave the company a second large mattress maker beside Tempur 14.

On 31 January 2020 it bought an 80 percent interest in Sherwood Bedding, which marked its entrance into private label bedding 13. On 2 August 2021 it acquired Dreams, the UK bedding retailer, which is reported in the International segment 13.

Net sales rose 34.1 percent in 2021 to $4,930.8 million from $3,676.9 million, with wholesale demand across retail partners behind most of the North American gain 13. Sales then stalled: $4,921.2 million in 2022 and $4,925.4 million in 2023 15.

The company tied the 2023 wholesale decline of 1.2 percent in North America to macroeconomic pressures on U.S. consumer behavior 15. Its International sales rose 3.4 percent on new Tempur product introductions 15.

On 5 February 2025 it completed the acquisition of Mattress Firm, the largest U.S. mattress specialty retailer, for about $5.1 billion net of cash acquired 4. The price was $3.1 billion in cash and about 34.2 million shares of common stock 4.

The company changed its name to Somnigroup International Inc. on 18 February 2025 and its ticker to SGI 4. To meet commitments made to win approval of the deal, it set aside 43 percent of premium floor slots at Mattress Firm stores for third-party mattresses 4.

Net sales for 2025 rose 51.6 percent to $7,476.5 million, led by $3,505.4 million of Mattress Firm sales for the months it was owned 4. Sales from Tempur Sealy North America to Mattress Firm, $976.2 million, were eliminated in the total 4.

Net income was nearly flat at $384.1 million against $384.3 million, because net interest expense doubled to $267.9 million from $134.8 million after the debt-funded purchase 4. Diluted earnings per share were $1.84 against $2.16 a year earlier 4.

Mattress Firm

Mattress Firm is the largest multi-branded mattress specialty retailer in the U.S., with over 2,100 stores and online sales 4. Beside the company's own brands it sells mattresses of other makers such as Purple, Beautyrest, Serta and Simmons, and its own Sleepy's label 4.

The segment reported second-quarter 2026 net sales of $922.2 million and a gross margin of 33.3 percent against 35.6 percent a year earlier 1. The company named product mix, consumer financing costs, investments in stores and deleverage as the causes 1.

Tempur Sealy North America

This segment makes and sells Tempur-Pedic, Sealy and Stearns & Foster mattresses through its own stores, online and third-party retailers 4. Its 2025 net sales were $2,701.2 million, down from $3,788.9 million, mostly because sales to Mattress Firm are now eliminated 4.

In the second quarter of 2026 its reported net sales fell 5.7 percent to $601.8 million, yet gross margin rose to 61.1 percent from 54.5 percent 1. The company credited Mattress Firm synergies, operational efficiencies and mix, and said price increases followed after quarter end to reflect higher input costs 1.

Tempur Sealy International

This segment covers manufacturing, distribution and retail in Europe, Asia-Pacific and Latin America, and includes Dreams, the leading U.K. specialty bedding retailer with over 200 stores 4. Its 2025 net sales were $1,269.9 million against $1,142.0 million 4.

Second-quarter 2026 sales rose 2.0 percent to $299.5 million, while gross margin fell to 47.4 percent from 48.2 percent on higher commodity costs 1.

Leggett & Platt

Leggett & Platt calls itself a pioneer of the steel coil bedspring and a diversified maker of engineered components found in homes and automobiles 8. Its 2025 net trade sales were $4,055 million, down 7 percent 8.

Karl Glassman stays as its chief executive, and Tyson Hagale, a 25-year veteran, was named its president on 26 August 2026 12. Its steel rod mill has a yearly capacity of about 500,000 tons, and about half of the output feeds its own wire mills 8.

Plants, people and rivals

Before the close, the 10-K counted over 70 manufacturing facilities and more than 20,000 employees 4. Chairman and chief executive Scott Thompson leads the company, and Bhaskar Rao is chief financial officer 32.

The company says the U.S. market for manufacturers is concentrated and the market for retailers is fragmented, with competition on price, quality, brand recognition, availability and performance 4. Retailers are also adding private label products 4.

Debt and payouts

On 27 July 2026 it refinanced its credit agreement with a $1,200.0 million term loan A due 27 July 2031 and a revolving facility of $1,700.0 million 6. About $1.5 billion of Leggett & Platt notes remain outstanding 2.

The board declared a quarterly dividend of $0.17 per share on 6 August 2026, and $774.5 million remained on the share repurchase authorization at 30 June 2026 15. Leverage was 2.99 times adjusted EBITDA at 30 June 2026 1.

The umbrella, in words

The three businesses named in the annual report are Tempur Sealy, Mattress Firm and Dreams, and the brands include Tempur-Pedic, Sealy, Stearns & Foster and Sleepy's 4. Leggett & Platt joined on 26 August 2026 as a wholly owned subsidiary 2.

Exhibit 21.1 lists subsidiaries such as Mattress Firm Group LLC, Tempur-Pedic Management, LLC, Sealy Canada, Ltd., Dan-Foam ApS in Denmark and Dreams Limited in the United Kingdom 9. It does not state which are listed companies 9.

Somnigroup reported a stake in Purple Innovation: warrants to buy 8,000,000 Class A shares, or 6.88 percent, in a Schedule 13G filed on 14 August 2025 11. The largest holder reported is FMR LLC at 12.5 percent of the common stock, in its latest Schedule 13G/A 10.

The common stock is the only class of equity, so no special share class carries extra votes 4. The largest distribution centers of Mattress Firm are in New York, Illinois and New Jersey, and nearly all its properties are leased 4.

Somnigroup said it will release third-quarter results before the market opens on 9 November 2026, with a conference call the same morning 7. The report on Leggett & Platt's financial statements is due by amendment within 71 days of the first filing 2.

The company expects to reduce leverage further toward the midpoint of its target range of 2.0 to 3.0 times adjusted EBITDA by year-end 3. It has identified $75 million in annual run-rate synergies and expects to give more detail on how they are realized 3.

It also expects about $50 million a year of non-cash expense, mainly in cost of goods sold, from the fair-value adjustment to the acquired business 3. It expects about $10 million a year in interest expense from the bonds 3.

On 6 August 2026, before the close, the company set 2026 adjusted earnings per share guidance at $2.85 to $3.15 1. In 2026 it plans a new Stearns & Foster collection in North America 4.