10:46 AM EST, 12/01/2025 (MT Newswires) -- Leggett & Platt ( LEG ) shares jumped intraday Monday after the company said it would assess Somnigroup International's ( SGI ) acquisition offer.

Bedding company Somnigroup ( SGI ) said in a Monday statement that it is offering stock worth $12 for every share of Leggett & Platt ( LEG ), "based on a fixed exchange ratio to be agreed." The proposal indicates a 17% premium to Leggett & Platt's ( LEG ) closing share price on Friday, Somnigroup ( SGI ) said.

Separately, Leggett & Platt ( LEG ) said its board will review the unsolicited proposal to determine the best course of action.

Shares of Leggett & Platt ( LEG ) were up 15% in Monday trade, taking their year-to-date gain to about 23%. Somnigroup's ( SGI ) shares were little changed intraday, but have surged 61% so far this year.

"Leggett & Platt ( LEG ) has been an important supplier to our company for many years," Somnigroup ( SGI ) Chief Executive Scott Thompson said. "This proposal would deliver significant value to Leggett & Platt ( LEG ) shareholders through a compelling premium and tax-advantaged participation in our combined platform, while also being accretive before synergies to all Somnigroup ( SGI ) shareholders."

A deal would "foster significant strategic advantages and efficiencies for the combined company," Thompson said in a letter to Leggett & Platt's ( LEG ) board.

The proposal is subject to due diligence.

"Leggett & Platt ( LEG ) does not intend to comment further on Somnigroup's ( SGI ) proposal until the board has completed its review," the company said, adding that no shareholder action is needed at this time.

Somnigroup's ( SGI ) offer comes as "a huge surprise for investors and the industry," Truist Securities said in a note e-mailed to MT Newswires.

"We see further backward integration of mattress production as the primary driver of the deal and potential synergies in addition to purchasing at a very low cyclical bottom," Truist Managing Director Keith Hughes said in a note e-mailed to MT Newswires.

Leggett & Platt's ( LEG ) product line-up includes bedding and furniture components, as well as automotive seat comfort and convenience systems.

With the non-mattress business accounting for more than half of Leggett & Platt's ( LEG ) sales, the deal-making process could turn out to be "very messy," Hughes said. Still, the analyst expects Leggett & Platt's ( LEG ) shareholders to accept the proposal.

"Leggett & Platt ( LEG ) has struggled with this industry downturn and management turmoil, thus (its) investors will most likely vote for the deal regardless of what the board thinks," Hughes said. "Note the top 8 holders at (Leggett & Platt ( LEG )) own 40% of shares and are all passive investors in our view."

Price: 11.68, Change: +1.42, Percent Change: +13.84