LEXINGTON, Ky. - Tempur Sealy (NYSE:TPX) International, Inc. (NYSE: TPX) today expressed its disappointment over the U.S. Federal Trade Commission's (FTC) decision to challenge its proposed acquisition of Mattress Firm Group Inc. Despite ongoing negotiations with the FTC to secure approval, the bedding giant faces federal litigation.
Tempur Sealy contends that the FTC's view does not align with the competitive nature of the bedding industry, which features a diverse range of products, brands, and purchasing methods. The company emphasizes that Mattress Firm operates only a small number of the numerous bedding storefronts in the U.S., and that many bedding products are also sold online.
The company believes the merger would benefit stakeholders, especially consumers, by combining Mattress Firm's retail footprint with Tempur Sealy's manufacturing strengths. This would lead to innovation, improved customer experience, and an expanded U.S. omni-channel platform. Tempur Sealy also anticipates operational synergies that could enhance logistics, product management, and manufacturing efficiency.
Tempur Sealy asserts that all of its mattresses sold in the U.S. are domestically produced, supporting thousands of American jobs. The company has received support from labor unions, with no opposition from those representing its employees.
In response to FTC concerns, Tempur Sealy has shown openness to commitments, including store divestitures and maintaining Mattress Firm as a multi-branded retailer. The company has also initiated post-merger supply agreements with several Mattress Firm suppliers and committed to offering third-party manufacturers guaranteed shelf space.
Confident in the transaction's procompetitive justification, Tempur Sealy is preparing for the litigation process, which it hopes will conclude in the next few months, allowing for a late 2024 or early 2025 transaction closure.
This news comes as Tempur Sealy plans a public conference call following the publication of the FTC's complaint. The company has made forward-looking statements regarding the expected benefits of the acquisition, while acknowledging that there is no certainty of these expectations being met due to various factors, including the outcome of the FTC litigation.
Based on a press release statement, Tempur Sealy, a leader in the bedding industry, aims to improve sleep quality worldwide and is working towards carbon neutrality for its global operations by 2040.
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