(From Leggett & Platt)Leggett & Platt today announced that its Board of Directors has entered into a customary non-disclosure agreement and 6-month standstill with Somnigroup to facilitate customary due diligence and to determine if a transaction can be reached that delivers appropriate value and certainty to Leggett & Platt and its shareholders.
Discussions between Leggett & Platt and Somnigroup follow the Leggett & Platt Board's careful review, in consultation with its independent financial and legal advisors, of Somnigroup's unsolicited proposal dated December 1, 2025 to acquire Leggett & Platt in an all-stock transaction. The Board determined that Somnigroup's $12 per share proposal undervalues the Company and declined the proposal.
The Board is committed to the course of action that it believes is in the best interests of the Company and its shareholders and will continue to evaluate and pursue all opportunities in that regard.
Leggett & Platt does not undertake any obligation to provide updates with respect to its evaluation and does not intend to make further public comments unless and until it otherwise deems further disclosure is appropriate or required. There can be no assurance that the Board's evaluation will result in a transaction, or the price, form of consideration or other terms and conditions of any such transaction. Leggett & Platt shareholders do not need to take any action at this time.
J.P. Morgan Securities LLC is serving as financial advisor to Leggett & Platt and Latham & Watkins LLP is serving as its legal advisor.
Leggett seems like a company that sells a bunch of normie slop just to keep existing, but the idea of innovation is painful, but necessary whether in house or being taken over. I looked over their webpage and it’s just the most unremarkable products ever.
ReplyDelete$12 per share? Leggett should be grateful!
ReplyDeleteYou are correct 2:12AM, the current Stock Price of Leggett and Platt would be way less than $12.00 per share - had not Somnigroup offered to buy it on December 1, 2025 in the first place. Leggett and Platt is on a downhill slide.
ReplyDeleteLet's remember that the Leggett and Platt Stock Price was $57.53 per share on May 7, 2021, when the Board made Mitch Dolloff, President and CEO, succeeding Karl Glassman on January 1, 2022. (DUMB DECISION)
Mitch Dolloff ran Leggett and Platt into the ground and on March 21, 2024 he resigned - the Stock had fallen to $18.78 per share, nearly a 1/3 of its value from May 7, 2021. So, the Board to cover up their Incompetency, gave Mitch Dolloff a Jackpot - Consulting Job with the Company for over $1-Million Dollars Annually, Medical Benefits, Cobra, Bonuses, and 4-weeks paid vacation. So, the Board paid for his Incompetence and was so afraid that someone else would hire him that they give him a $1-Million Dollar Consulting Job - and another - $500,000 Benefits Package - While the Stock Owners Value of their Portfolios went into the Dirt.
Why didn't the Stock Shareholders ask for the Resignations of the Board Members - Why didn't the Stock Shareholders File Class Action Lawsuits based on the Incompetence of the Board Members and Failure to Deliver Value on the Investments that they made into Leggett and Platt???
The 52 week trading range for Leggett & Platt stock is between 6.48 and 12.77.
ReplyDeleteThe are probably about one recession away from a Chapter 7 Bankruptcy. The trading range then will probably be a high of $0.00 a share.
Everyone’s an expert suddenly. LoL.
ReplyDeleteTo the first comment, what, exactly, is supposed to be remarkable about the inner parts of furniture? Why are you thinking bed springs, furniture components, and the like, would be “remarkable”. They’re simply necessary, even if boring. The beauty of producing needed items.
To the next comments, Leggett & Platt is not known historically for high stock values, as high as they were during the Covid spike. You can’t use the Covid years as your benchmark. Leggett has been a comfortable and successful company with stock values well below the Covid spike for decades. Covid upped stock values in many home improvement related corners of the market, when people were stuck at home and masses deciding to engage in home improvement. It was an anomaly and not the norm. Then came the predictable drop off.
The current additional downturn has been merely cyclical and economy related. Experts always expected Leggett to come out of this normal cycle low. Which it is inching toward now, as predicted, as the economy improves and people resume life improvement spending.
However, Somnigroup in its desire to buy out many of its suppliers (which it has been doing) took advantage of the current low. It came at a perfect moment, with Karl Glassman having been asked to come out of retirement to take the CEO spot after the poor performance of Dolloff. Glassman would like to resume his retirement, which means the perfect storm for Somnigroup. A cyclical low making Leggett vulnerable for being acquired by a conglomerate, and a CEO who wants to resume retirement, when the board struggles to find candidates who would like to move to SWMO to take that job. That’s really all this whole thing is about. Also, Dolloff was given a one year package, not a job continuing into perpetuity.
People still need furniture. Furniture still needs components. Leggett will still make components, even if under a modified company name. Markets and economy dictate when people make the decisions for home/life upgrades. Somnigroup will fatten their presence. Leggett execs who would be duplicates in the acquisition will need to find new jobs. Everyone else will continue on as they are. This is why we saw the fat cat execs have given themselves lucrative “stay bonuses” in case an agreement on price is reached and then gov’t approval is granted and the purchase takes place.
Some are more expert than others, or some can at least read a stock chart.
DeleteLook at the chart for Leggett and Platt.
The first time Leggett & Platt traded above $12.00/share was late in August of 1995. It traded in a range until breaking out through $12.00 early in May of 1996.
In March of 2009 it briefly traded below $12.00 after consistently remaining above $20.00 for almost the entire period between May 1996 and March of 2009.
The next time the stock fell below $12.00 was May 2024. The stock traded as low as $6.56 in April of 2025. The stock did not trade above $12.00 again until January of 2026.
As to the supposed covid effect mentioned in a previous comment:
The stock consistently traded above $35.00 from October 2014 until December of 2022 when it broke downwards through $35.00, a level which it has not yet returned to.
There was a brief separate significant decline early in 2020, with a bottom late in March just under $24.00, but the stock reversed and traded above $35.00 by July of 2020, remaining above $35.00 until December off 2022 as discussed previously.
The charts don't lie, look for yourself.
4:08PM, It doesn't take a High IQ or being any type of "Expert", to wonder why you would give Mitch Dolloff any type of Job, even for 1-Year Extension and a $1.5 Million Dollar Consulting Package, after he resigned.
ReplyDeleteHe was probably going to be terminated and then to think he was such a Valuable Executive Member and Leader that some other Company would want him - is just ridiculous. His stats just do not play out - Let's look at his LinkedIn - "I was selected for my vision, influence, financial acumen, and proven track record of leading business units through transitions" - total yearly compensation is $7.35M, comprised of 15.2% salary and 84.8% bonuses, including company stock and options.
Part of an Executive's Job - CEO / President is to have Plans in place for downturns to be able to diversify your product lines as you face economic situations - If Mitch Dolloff was so valuable in the Marketplace - WHY ON HIS LINKEDIN PAGE - Does he not have another JOB - His Contract with Leggett and Platt is UP - Again, it doesn't take an "Expert", to figure that out - DOES IT!!!
Leggett has 10-Board Members with an Average Salary of $322,000 Dollars Annually - I am sure that the employees on the many Plant Floors would love to find a part time job that meets a few times a year and be paid $322,000
Could it be that the 2-Board Members of Leggett and Platt have Psychology
College Degrees - This is a Manufacturing Company - Not a "Do you Feel Ok or Are you in your Safe-Place Today - Company."
Mary Campbell - Education:
Ms. Campbell holds a bachelor’s degree in psychology from Central Connecticut State University - Total Board Compensation - $309,228
Phoebe A. Wood - Ms. Wood holds a degree in psychology from Smith College and an MBA from UCLA - Total Board Compensation - $312,801
Do you really think that Leggett and Platt and its Shareholder got its Money Worth - From Mitch Dolloff and its Board Members? The answer is NO?
So, Everybody's an Expert - 4:08PM, we are all to believe that for what Leggett and Platt pays their Executive Management Team - They have problems finding competent people to move to or recruit from SWMO to take these overpaid jobs? - BS - they Hire Poorly - Two of their Board Members have Psychology Bachelor Degrees - Is this to assist and help, a Manufacturing Company, to better Manage their - Woke, DEI, CRT, Pronoun Shaming Policies - "How are you Feeling today - Is Management helping to create a Safe Place for you - What should we call you - them/they/he/she/etc.," - Ridiculous - This Executive Group still gives themselves unbelievable Pay, Bonuses, Stock Options, and Benefits - while the stock price goes through the floor and their employees - suffers Plant Closings, Layoffs, and an Uncertain Future - But the Executives still get their Paychecks - - - DOES THIS SEEM FAIR - PAYING FOR IDIOTS MAKING BAD DECISIONS AND HAVING THE EMPLOYEES AND SHAREHOLDERS SUFFER
ReplyDeleteBECAUSE OF IT...
HERE IS THE TRUTH AND FACTS!
Karl Glassman, who returned as president and CEO in May 2024 after previously retiring from the company's top job, was the top-paid officer at Leggett & Platt in 2024. The proxy filing indicates Glassman's total compensation last year was roughly $9.9 million, up from $1.2 million in 2023, when he was a board member at the company.
Glassman stayed on as a board member when he was succeeded in early 2022 by CEO Mitch Dolloff. The company announced last year that Dolloff exited the company as Glassman stepped in amid a restructuring plan.
Leggett & Platt's top executives, by 2024 total compensation reported in the proxy filing, are as follows:
• Glassman, president and CEO, $9.9 million, up 694.8%
• Dolloff, former president and CEO, $5.7 million, down 22% (Remember he Resigned on March 21, 2024 of that year so he didn't even get fully compensated - OMG -
• Benjamin Burns, executive vice president and chief financial officer, $1.8 million, up 64.4%
• Tyson Hagale, executive vice president and president of bedding products, $1.8 million, up 5.9%
• Jennifer Davis, executive vice president and general counsel, $1.4 million
• R. Samuel Smith Jr., executive vice president and president of specialized products and furniture, flooring and textile products, $1.5 million
Davis and Smith were not previously named executive officers, so prior-year data is not available in the proxy filing.
During 2024, Leggett & Platt posted a 2024 net loss of $511.5 million, which compares with a net loss of $136.8 million in 2023.
How Incompetent was Mitch Dolloff - - as a CEO / President -
ReplyDeleteThe Numbers Do Not Lie - - 2023 and 2024 shows that under his "So-Called Vision, Leadership, Risk Management Philosophies, Financial Acumen, Vanderbilt Degrees, and Proven Track-Record (where from nobody knows) that Legget and Platt - LOST - ALMOST $650 - Million Dollars. Mitch - You must be some type of Mesiah to Sell everyone your bunch of BS - - -
Yet, Leggett and Platt - Still gave him a $1.5 Million Consulting Job - because they thought somebody was going to SNAP HIM UP - OMG - OMB - How DUMB CAN YOU BE!!!
LOST - $650 - Million Dollars - 2-Years is that a Record for a CEO / President?
Leggett & Platt Annual Net Income
(Millions of US $)
2024 $-512
2023 $-137
2022 $310
2021 $402
2020 $253
2019 $314
2018 $306
2017 $293
2016 $386
2015 $325
2014 $98
2013 $197
2012 $248
2011 $153
Huh.
DeleteThis might explain why Leggett's stock price fell off a cliff late in 2021.
You don't turn the Titanic around overnight!
ReplyDeleteAgain, why would the Board of Directors allow Mitch Dolloff to lose $650 - Million Dollars - in 2-Years - Were they following the guidelines set forth by the President at that time - Sleepy Joe Bidden, because somebody was A-Sleep-At-The-Wheel?
ReplyDeleteI’m guessing 4:08 is in a leadership role at L&P, which one are you, that’s the only person that defend L&P bad decisions, while cashing fat checks.
ReplyDelete