Tempur Sealy buys Mattress Firm in $4B deal

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Tempur Sealy Mattress Firm purchase overview: 

• Who: Mattress maker Tempur Sealy is acquiring bedding retailer Mattress Firm for around $4 billion. 
• Why: The deal will give the combined company a total of 3,000 stores and is expected to save Tempur Sealy and Mattress Firm a total of $100 million over the four years after it is finalized. 
• Where: Nationwide.
• What are my options: Consumers may be interested in bedding and furniture from Castlery. 

Tempur Sealy is set to acquire Mattress Firm, the nation’s largest bedding retailer, in a deal worth around $4 billion, the companies announced earlier this month. 

The deal is expected to close in the second half of 2024 and will give the combined company a total of 3,000 stores to go along with 71 manufacturing facilities, CNN Business reports. 

Tempur Sealy will reportedly pay around $2.7 billion in cash and $1.3 billion in company stock to Mattress Firm shareholders to complete the acquisition, which will have Mattress Firm operating as its own separate business unit within the new company. 

The two companies have forecast the deal will save them $100 million in cost savings by the time it reaches four years old, CNN Business reports. 

Mattress Firm, which has around 2,300 stores, previously filed for bankruptcy in 2018, and has reportedly struggled with over-expansion, as well as competition in the bedding space from online retailers such as Amazon and Casper. 

Steinhoff International, Mattress Firm’s parent company, said last year it was looking into “strategic options” for how it could improve, while a plan to create a public offering for the company was discarded earlier this year, CNN Business reports. 

Tempur Sealy adding Mattress Firm to portfolio containing Sealy, Tempur, Tempur Pedic, Stearns and Foster

Tempur Sealy will be adding Mattress Firm to a portfolio that reportedly already includes Tempur Pedic, Sealy, Tempur, and Stearns and Foster. 

A class action lawsuit was filed against Tempur Sealy in 2018 over allegations surrounding a 2016 data breach that exposed the personal and financial information of its customers. 

Customers argued Tempur Sealy failed to protect their information and allegedly waited nearly two months to notify them about the data breach after first discovering it. 

Mattress Firm, meanwhile, recently agreed to pay $4.9 million to resolve claims the company sold Bed Tech bed frames that were defective and dangerous. 

Consumers argued the allegedly defective Bed Tech bed frames — which were recalled in March 2021 — were prone to collapsing and could lead to serious injury or death. 

Have you purchased a Tempur Sealy or Mattress Firm product? Let us know in the comments. 

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