Tempur Sealy International has overcome competition concerns and completed its acquisition of Mattress Firm Group, the US' largest mattress specialty retailer.
The company also announced that it will change its name to Somnigroup International from 18th February.
Mattress Firm, Dreams and Tempur Sealy will operate as decentralised business units under Somnigroup International. Mattress Firm and Dreams will continue to operate as multi-branded retailers, and Tempur Sealy, primarily a manufacturer, will continue to serve third-party retailers as well as the Mattress Firm, Dreams and Tempur Sealy D2C channels.
On a pro forma basis for the acquisition of Mattress Firm, the company generated approximately $8b in sales over 2024, net of intercompany sales – implying sales of approximately 85% in North America and 15% in international geographies, with approximately 65% of sales from D2C channels and 35% from third-party retailers.
Chairman and CEO Scott Thompson says: "We have collaborated with Mattress Firm for over 35 years, and we are thrilled to welcome them into the Tempur Sealy, soon Somnigroup, organisation. The addition of Mattress Firm will unlock incremental benefits for all stakeholders by accelerating our US omnichannel strategy. This transaction creates a leading global bedding company with extensive manufacturing capabilities and a broader US retail footprint. Together, the companies are positioned to facilitate enhanced product innovation, improve the customer buying experience, and ensure high-quality, durable products are brought to market."
The total purchase price was approximately $5b.
