Aug. 21 at 8:51 PM
S&P Global Ratings upgraded Somnigroup International to BB+ from BB, citing lower leverage following the Mattress Firm integration. Adjusted leverage fell to 3.5x from about 3.8x pro forma, while Q2 sales declined 3% but adjusted EBITDA rose more than 15% on synergies, operational efficiencies and product mix.
S&P expects roughly 2% sales growth and leverage of about 3.2x in FY2026. Somnigroup expects
$65 million in cost synergies. Its planned
$2.5 billion all-stock acquisition of Leggett & Platt is expected to be leverage-neutral and create a vertically integrated bedding company with about
$11 billion in sales and
$2 billion in adjusted EBITDA.
The agency assigned a positive outlook, with another upgrade possible if Somnigroup successfully integrates Leggett & Platt and keeps leverage below 4x.
$LEG $SGI