Acquisition on track for late 2024
By Alan Wolf, YSN
Tempur Sealy said its planned acquisition of Mattress Firm is on track to close in the second half of 2024.
In its bid to buy the nation’s largest mattress retail chain, the Lexington, Ky.-based manufacturer is helping to quell any antitrust concerns by the Federal Trade Commission (FTC) by certifying substantial compliance with the agency’s second request for documents and information.
In a statement, Tempur CEO Scott Thompson said, “We are excited about the long-term growth prospects for our global company and believe a combination with Mattress Firm will further accelerate our shared opportunities.”
The combination, he said, “will complement Tempur Sealy’s extensive product development and manufacturing capabilities with vertically integrated retail, bringing Tempur Sealy closer to consumers and facilitating continued innovation.”
The bedding maker announced its intention last May to bring Mattress Firm in-house in a cash-and-stock deal valued at $4 billion. Under the proposal, the 2,300-store chain would operate as a separate business unit within Tempur, and its board would expand to include two of the retailer’s directors. The combined entity would wield about 3,000 stores, 30 e-commerce platforms, 71 manufacturing plants and four R&D facilities.
The Houston-based retailer filed for Chapter 11 bankruptcy protection in 2018, and its current majority owner, Steinhoff International, an offshore holding company, skuttled plans for an initial public offering earlier this year amid market volatility.
Tempur said it expects the deal to pass regulatory muster and, pending the satisfaction of closing conditions, anticipates completing the purchase in mid- to late-2024.