Feb. 5, 2025
Tempur Sealy moved forward with its acquisition of bedding retailer Mattress Firm after a federal judge denied antitrust regulators’ request for a preliminary injunction. In early February, the companies closed on their $5 billion deal, which Tempur Sealy CEO Scott Thompson said creates “the world’s largest bedding company.”
The company will change its name to Somnigroup International and run Tempur Sealy, Dreams and Mattress Firm as decentralized business units. The transaction was funded by about $2.7 billion in cash on hand plus proceeds from existing borrowings and 34.2 million shares of common stock. A week after the deal closed, Mattress Firm CEO John Eck announced he would step down.
In the second quarter, the company expects to complete its divestiture of 73 Mattress Firm stores and the chain’s Sleep Outfitters subsidiary, which runs 103 stores, an agreement made last year to address antitrust concerns.
Sept. 23, 2024
Tempur Sealy, faced with a Federal Trade Commission fight against its proposed takeover of retailer Mattress Firm, on Sept. 23 inked a deal to divest 73 Mattress Firm stores along with 103 specialty mattress retail locations and seven distribution centers run by its Sleep Outfitters subsidiary.
Mattress Warehouse, which runs more than 320 stores and is the second-largest retailer in the space, would acquire those locations, though the agreement is contingent upon Tempur Sealy’s Mattress Firm acquisition going through.
A few weeks later, Tempur Sealy and Mattress Firm sought an injunction in federal court to stop the FTC’s administrative proceedings on the matter, which is happening alongside the agency’s federal suit. The complaint, filed Oct. 4, argues that the dual actions violate constitutional protections.
July 2, 2024
The Federal Trade Commission in July voted unanimously to block Tempur Sealy International’s $4 billion bid to acquire Mattress Firm. In the process the FTC authorized a federal lawsuit to fight the deal, inked about a year ago.
In a special call July 8, Tempur Sealy executives said that, due to the lawsuit, their comments would be limited. However, they said they had worked with the FTC for over a year, granting several extensions throughout that process. CEO Scott Thompson told investors that the company believes it will prevail in court and that the transaction will likely close late this year or in early 2025.
May 9, 2023
Tempur Sealy International on May 9 announced a deal to acquire Mattress Firm in a stock-and-cash deal valued at about $4 billion. About $2.7 billion of cash consideration includes the repayment of Mattress Firm’s debt and other items, and 1.3 billion in stock will be issued to Mattress Firm shareholders.
Tempur Sealy expects to begin realizing various marketing and other synergies by the end of year two and to realize at least $100 million in annual run-rate synergies by the end of year four.
Mattress Firm has sold brands from Tempur Sealy – which include Tempur-Pedic, Sealy and Stearns & Foster lines as well as various private labels – for 35 years. Mattress Firm’s more than 2,300 brick-and-mortar retail stores, e-commerce, and sleep education and tracking platforms complement Tempur Sealy’s DTC operations, “enabling a seamless omni-channel ecosystem that meets the needs of more consumers nationwide,” the companies said.
