Will maintain percentage of competitors’ beds for five years
YSN Staff
Tempur Sealy International (TSI) has agreed to maintain the amount of floor space allotted to premium competitors in Mattress Firm stores for five years, should the Federal Trade Commission (FTC) approve the merger of the two bedding businesses.
The offer would keep the percentage of premium slots available to non-TSI mattresses at the current 43%, up from a previous 28% pledge, and came in response to a federal court’s concerns over the discrepancy, Furniture Today reported.
Tempur Sealy’s proposed $4 billion acquisition of the nation’s largest mattress chain has faced fierce opposition from the FTC, which filed suit in July and cited multiple internal documents showing the deal is designed to “kneecap competitors and dominate the market.”
See: Tempur’s Mattress Firm Buy Blocked by FTC
Tempur Sealy said its five-year floor space commitment was unnecessary to make the purchase “pro-competitive,” but is “committed to resolving this court’s concerns so that the merger, which will benefit both competition and consumers, may proceed.”
See also: Tempur Fires Back at FTC
Judge Charles Eskridge of the U.S. Court for the Southern District of Texas, who is hearing the case, is expected to rule on the proposed merger by Jan. 30.
