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A12 BUSINESS
Wednesday 10 May 2023

Tempur Sealy to buy Mattress Firm in $4

billion deal

By WYATTE GRANTHAM-
PHILIPS
AP Business Writer
WASHINGTON (AP) — Bed-
ding provider Tempur Sealy
has agreed to acquire
Mattress Firm in a cash-and
stock-transaction valued at
about $4 billion, the com-
panies said Tuesday.
Mattress Firm operates
more than 2,300 brick-and-
mortar retail locations and
an e-commerce platfom.
After the Tempur Sealy ac-
quistion is complete, the A Mattress Firm store location has an open sign in a window,
two companies will have Tuesday, May 9, 2023, in Dedham, Mass.
a total of some 3,000 re- Associated Press
tail stores, 30 e-commerce shareholders will own been a “priority” for Stein-
platforms, 71 manufactur- about 16.6% of the com- hoff as the parent compa-
ing facilities and four re- bined company and Tem- ny looks to pay down debt.
search and development pur Sealy shareholders will Saunders added that the
facilities worldwide. own the rest. deal will allow Tempur
“This combination will ac- The companies expect to Sealy to expand its distribu-
celerate our growth trajec- complete the transaction tion and reach more con-
tory and enhance oper- in the second half of 2024. sumers at a crucial time for
ating cash flow,” Tempur After the acquistion is com- increasing sales.
Sealy Chairman and CEO plete, Mattress Firm is set “Tempur Sealy will also
Scott Thompson said in a to operate as a separate hope that Mattress Firm
statement. “Mattress Firm business unit within Tempur helps them to buck the
has been a valued retail Sealy. current slowdown in sales
partner for more than 35 Tempur Sealy received a which is being caused by
years, and we look forward request frm the Federal the cost-of-living crisis and
to welcoming their talent- Trade Commission for ad- many households having
ed workforce of more than ditional information and upgraded their mattresses
8,100 employees to the documents related to the during the pandemic,”
Tempur Sealy family.” transaction. The company Saunders said.
Mattress Firm CEO John Eck plans to “work coopera- But the full impact of the
added that the transac- tively” with the FTC to com- acquistion is still unknown.
tion will increase the com- plete the acquistion. Saunders points to the high
panies’ ability “to better Piper Sandler said in a note purchase price and other
address consumers’ needs Tuesday the prospect of challenges retailers like
and drive growth.” Tempur Sealy acquiring Mattress Firm face today
Tempur Sealy will pay Mattress Firm “has been including the disruption
about $2.7 billion in cash discussed for many, many from a “raft of specialist
and $1.3 billion in stock to months within the industry.” new entrants to the market,
Mattress Firm, which is par- The investment banking most of which sell directly
tially owned by Steinhoff and research firm expects to consumers” and “pres-
International Holdings NV. a long FTC review process, sure from the expansion of
That reflects the issuance noting that the transaction home players like IKEA.”
of 34.2 million common marks a “seismic deal for While Mattress Firm and
shares, based on Mon- the mattress industry.” Tempur Sealy have a long
day’s closing share price of Neil Saunders, managing history as retail partners, the
$37.62. director of data analytics two have had a rocky rela-
After the transaction is company GlobalData, said tionship in recent years.q
complete, Mattress Firm selling Mattress Firm has

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