While Mattress Firm and Tempur Sealy have a long history as retail partners, the two have had a rocky relationship in recent years. Saunders points to the high purchase price and other challenges retailers like Mattress Firm face today - including the disruption from a “raft of specialist new entrants to the market, most of which sell directly to consumers” and “pressure from the expansion of home players like IKEA.” “Tempur Sealy will also hope that Mattress Firm helps them to buck the current slowdown in sales which is being caused by the cost-of-living crisis and many households having upgraded their mattresses during the pandemic,' Saunders said.īut the full impact of the acquistion is still unknown.

Saunders added that the deal will allow Tempur Sealy to expand its distribution and reach more consumers at a crucial time for increasing sales. Neil Saunders, managing director of data analytics company GlobalData, said selling Mattress Firm has been a “priority” for Steinhoff as the parent company looks to pay down debt. Piper Sandler said in a note Tuesday the prospect of Tempur Sealy acquiring Mattress Firm “has been discussed for many, many months within the industry.” The investment banking and research firm expects a long FTC review process, noting that the transaction marks a “seismic deal for the mattress industry.” The company plans to “work cooperatively” with the FTC to complete the acquistion. Tempur Sealy received a request frm the Federal Trade Commission for additional information and documents related to the transaction. After the acquistion is complete, Mattress Firm is set to operate as a separate business unit within Tempur Sealy. The companies expect to complete the transaction in the second half of 2024.

That reflects the issuance of 34.2 million common shares, based on Monday's closing share price of $37.62.Īfter the transaction is complete, Mattress Firm shareholders will own about 16.6% of the combined company and Tempur Sealy shareholders will own the rest. Tempur Sealy will pay about $2.7 billion in cash and $1.3 billion in stock to Mattress Firm, which is partially owned by Steinhoff International Holdings NV. Mattress Firm CEO John Eck added that the transaction will increase the companies' ability 'to better address consumers’ needs and drive growth.” “Mattress Firm has been a valued retail partner for more than 35 years, and we look forward to welcoming their talented workforce of more than 8,100 employees to the Tempur Sealy family.” “This combination will accelerate our growth trajectory and enhance operating cash flow,” Tempur Sealy Chairman and CEO Scott Thompson said in a statement.

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