What Does KeyBanc Think About Somnigroup (SGI) After It Cleared the Leggett & Platt Antitrust Hurdle?

ty-carlson-I8kTKM17Ktc-unsplashRegarding the Leggett & Platt acquisition, Somnigroup filed a Form 8-K connected June 4 detailing that it had cleared the antitrust hurdle without a national challenge. The institution values the acquisition astatine $2.5 billion, and, if completed, Leggett & Platt volition go a wholly owned subsidiary of Somnigroup. Somnigroup expects the woody to adjacent by the extremity of this year.To Thomas, the KeyBanc analyst, this woody matters due to the fact that Leggett & Platt has historically been 1 of Somnigroup's cardinal upstream suppliers. The institution provides materials utilized successful mattress manufacturing, and truthful bringing it in-house would springiness Somnigroup greater power implicit its proviso chain, noted Thomas. It volition besides "unlock synergies," the expert believes, that could transcend the stated $50 cardinal target.Thomas besides highlighted that Somnigroup is already integrating the Mattress Firm acquisition. Mattress Firm is the largest mattress retail concatenation successful the US, whose acquisition Somnigroup completed connected February 5, 2025, for astir $5.1 billion. As per Thomas, Somnigroup has been making measurable advancement connected synergy delivery.Somnigroup International Inc. (NYSE:SGI) is simply a mattress and bedding products company. It designs, manufactures, and distributes mattresses, adjustable bases, pillows, and different slumber accessories nether brands similar Serta, Simmons, and Tuft & Needle.While we admit the imaginable of SGI arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.READ NEXT: 10 Best Fast Growth Stocks to Buy According to Hedge Funds and 15 Best AI Stocks Under $10 to Buy Now.Disclosure: None. Follow Insider Monkey connected Google News.