On Tuesday, Tempur Sealy announced its acquisition of Mattress Firm through a cash-and-stock transaction worth approximately $4 billion. The move is intended to boost the bedding company’s operations and address the decline in sales following the pandemic.
Mattress companies have experienced a decrease in sales over the past few quarters, after initially experiencing a surge in demand during the pandemic when consumers were upgrading their home furnishings.
The proposed merger would result in a total of 3,000 stores worldwide, 30 online platforms, and 71 manufacturing facilities. Tempur Sealy predicts a positive impact on adjusted per-share earnings in the first year after closing, without considering synergies. The merger is scheduled to be finalized in the second half of 2024.
Related: US: Sleepy’s sold for $780M to rival Mattress Firm
“I don’t think it’s any harder to go through a downturn with Mattress Firm than it would be to go through it without,” Tempur Sealy CEO Scott Thompson said.
Mattress Firm is a major bedding retailer in the United States, with over 2,300 physical store locations, and is partially owned by Steinhoff International Holdings NV.
The private company withdrew its plans to go public earlier this year and is currently exploring business options.
