Leggett & Platt, Incorporated announced that it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment. In response to evolving markets, the Company is taking actions to improve manufacturing and distribution efficiency, advance its product strategy, and further support citstomer needs. These actions are expected to generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025.

The major Bedding Products initiatives that are part of the its Plan include: Refocitsing Strategy: The company are continuing to reshape its Bedding Products bitsiness to focits on innovative, higher-value content, driven by citstomer and end-consumer needs. The company are proud of its long history of providing product solutions its citstomers value and see further opportunities to do so in both innersprings and specialty foam, from components to private label finished goods. Optimizing Manufacturing and Distribution Footprint: The company plan to consolidate certain locations across the Bedding Products segment, reducing its manufacturing and distribution footprint of 50 facilities to approximately 30 to 35 facilities.

Creating a new and more efficient regional distribution network will support its ability to maintain sufficient manufacturing capacity in fewer, higher-output facilities to effectively serve its citstomers and better align with anticipated future market demand. These actions should allow its to integrate its specialty foam and innerspring capabilities while maintaining market- leading service and product quality levels and improving overall efficiency. The initiatives outlined above are expected to enable profitable growth through expanded product capabilities and increased content at attractive price points, reduce costs, and create shareholder value.

In Furniture, Flooring & Textile Products the company plan to consolidate a small number of production facilities in Home Furniture and Flooring Products to better align capacity with regional demand and drive operating efficiencies.  total, the initiatives are expected to reduce annual sales by approximately $100 million and generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025, with some of the benefit starting to be realized in the second half of 2024. Additionally, The company anticipates receiving approximately $60 to $80 million in net cash proceeds from the sale of real estate associated with the initiatives, with transactions largely complete by the end of 2025. The company expects to incur restructuring and restructuring-related costs of $65 to $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025.

This includes $30 to $40 million in cash costs, the majority of which are anticipated to be incurred in 2024. In the first half of 2024, The company anticipates $20 to $25 million of restructuring and restructuring-related costs (approximately half in cash costs).