Seeks to block agency’s 2nd Mattress Firm challenge

By Alan Wolf, YSN

One month ahead of a federal court challenge by the Federal Trade Commission (FTC) to block Tempur Sealy International’s (TSI’s) planned acquisition of Mattress Firm, the vendor filed its own complaint against the agency, seeking to enjoin an internal proceeding to scuttle the $4 billion deal.

The action, filed with the U.S. District Court for the Southern District of Texas, calls for an injunction against the FTC administrative proceeding, which would challenge the mattress maker’s merger with the national bedding chain. TSI argued that the proceeding, if held in addition to next month’s separate trial, also in the Southern District, would violate its constitutional protections.

In a statement, TSI Chairman/CEO Scott Thompson pointed to the federal court as “the proper forum to address this issue.”

A Win-Win Situation

“The bedding industry is highly competitive, including thousands of brick-and-mortar storefronts and a vast online marketplace,” Thompson continued. “The combination of Tempur Sealy and Mattress Firm will deliver incremental benefits to consumers and opportunities for employees, from enhanced product innovation to an improved customer buying experience and strengthening the entire financial position for the company.”

Thompson further pledged “to vigorously defend our transaction in the upcoming trial in federal court.” The hearing is scheduled to begin on Nov. 12 and is expected to last two weeks.

Mattress Firm, which filed for bankruptcy protection in 2018, is the nation’s largest bedding chain with some 2,300 stores. TSI has taken steps to quell the FTC’s antitrust concerns by agreeing to sell 73 Mattress Firm stores and its own 103-store Sleep Outfitters subsidiary to Frederic, Md.-based Mattress Warehouse, which operates about 300 stores throughout the Mid-Atlantic.

TSI said it believes the litigation can be concluded successfully in the coming months, which would allow the $4 billion cash and stock deal to close later this year or in early 2025.

In anticipation, the company secured a $1.6 billion term loan in September to help fund the merger.

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