19 May 2024, 21:35
By Furniture News May 11, 2023

Tempur Sealy to acquire biggest US mattress retailer

Tempur Sealy International has signed a definitive agreement to acquire Mattress Firm, the largest specialist mattress retailer in the US, in a cash and stock transaction valued at approximately $4b.

The transaction is expected to be funded by approximately $2.7b of cash consideration and $1.3b in stock consideration issued to Mattress Firm shareholders, and is anticipated to close in the second half of 2024, subject to regulatory approval. Mattress Firm is then expected to operate as a separate business unit within the company.

Founded in 1986, Mattress Firm operates through more than 2300 brick-and-mortar retail locations and a growing ecommerce platform. 

Tempur Sealy says this combination – which echoes the group's purchase of Dreams in the UK in 2021 – will complement extensive product development and manufacturing capabilities with vertically integrated retail.

Together, Tempur Sealy and Mattress Firm's combined global footprint will include approximately 3000 retail stores, 30 ecommerce platforms, 71 manufacturing facilities, and four R&D facilities worldwide, and these combined operations will be supported by more than 21,000 employees, delivering sleep solutions to consumers in over 100 countries.

Tempur Sealy chairman and CEO Scott Thompson says: "This transaction advances all four of our key long-term initiatives: to develop the highest quality bedding products; promote brands with compelling marketing; optimise our diverse omnichannel distribution platform; and drive EPS growth. Consistent with our M&A strategy, this acquisition will make Tempur Sealy more competitive by bringing us closer to consumers and facilitating continued innovation.

"We are excited by the long-term growth prospects for our global vertically integrated company. This combination will accelerate our growth trajectory and enhance operating cash flow. 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 8100 employees to the Tempur Sealy family."

Mattress Firm CEO John Eck adds: "We know that every customer has unique needs and wants when it comes to a sleep solution that is perfect for them. As part of Tempur Sealy, our customers will benefit from our combined portfolio of highly recognised brands and products, extensive omnichannel capabilities, industry leading innovation and best-in-class teams. Under Tempur Sealy's leadership, our combined company will be in a unique position to take advantage of our shared values and complementary capabilities to better address consumers' needs and drive growth."

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