Somnigroup has agreed to acquire components manufacturer Leggett & Platt in an all-stock deal worth $2.5 billion, succeeding in a months-long effort to buy one of the key suppliers for its bedding empire. Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each share they own, ending up with approximately 9% ownership of the combined company.

The deal represents the culmination of an acquisition push that began in December when Somnigroup offered $1.63 billion for Leggett & Platt, which produces mattress springs and specialty foam. That initial offer represented a 30% premium to Leggett & Platt's average closing price over the prior 30 days. Leggett & Platt rejected the offer but later entered a nondisclosure agreement and six-month standstill with Somnigroup to facilitate due diligence.

The acquisition will allow Somnigroup, formed from Tempur-Sealy's acquisition of Mattress Firm, to deepen its vertical integration strategy by bringing component engineering and mattress design under one roof. The combined entity will control more of its supply chain from components to retail.