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CARTHAGE, Mo. - Diversified manufacturer Leggett & Platt, known for its wide range of engineered components and products, announced today that it has entered into an agreement to sell its Aerospace Products Group to funds managed by Tinicum Incorporated. The all-cash deal is valued at $285 million, subject to standard working capital and debt adjustments.
The Aerospace Products Group, which produces complex tube and duct assemblies for commercial and military aircraft, as well as space launch vehicles, operates seven manufacturing facilities across the United States, the United Kingdom, and France. It employs around 700 people and reported net trade sales of $190 million in 2024, representing approximately 4.3% of Leggett & Platt’s total revenue of $4.38 billion in the last twelve months.
This sale is part of Leggett & Platt’s ongoing strategic review to streamline its business and focus on sectors that align with its long-term goals. The company expects to receive after-tax proceeds of approximately $240 million from the transaction, which is slated to close within the year pending regulatory approvals and fulfillment of closing conditions.
Leggett & Platt will provide updated financial guidance for the full year of 2025 after the completion of the sale, excluding contributions from the Aerospace Products Group.
Financial advisory services for the transaction are being provided by Lazard, while Freshfields is acting as the legal advisor.
Based on the press release statement, this transaction reflects the company’s efforts to optimize its portfolio and concentrate on core businesses. Leggett & Platt (NYSE: LEG), with a history spanning 142 years, remains a leading supplier in multiple sectors, including bedding components, automotive systems, furniture, and more.
Investors and interested parties should note that forward-looking statements in the press release regarding the expected timing, completion, and financial impact of the transaction are subject to risks and uncertainties that could cause actual results to differ materially. These include potential regulatory hurdles and the risk that the deal may not close as anticipated or at all.
In other recent news, Leggett & Platt reported its Q4 2024 earnings, revealing an earnings per share (EPS) of $0.21, which fell short of the projected $0.25. However, the company’s revenue of $1.1 billion exceeded expectations, surpassing the forecasted $1.04 billion. This robust revenue performance contributed to a 7.4% rise in after-hours stock trading. The company also announced a strategic focus on green ventures, aligning with its long-term growth plans. Analysts noted that Leggett & Platt’s strategic direction and strong revenue performance might have fueled investor confidence despite the EPS miss. Additionally, the company is targeting a reduction in vacancy rates and loan-to-value (LTV) ratios as part of its portfolio optimization efforts. Looking ahead, Leggett & Platt projects a 7% increase in adjusted funds from operations (AFFO) for 2025. The company continues to emphasize cash management and financial stability in its strategic initiatives.
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