US to block Tempur Sealy's $4 billion Mattress Firm deal
Last edited Wed Jul 3, 2024, 08:45 AM - Edit history (1)
Source: Reuters
July 2, 2024 1:24 PM EDT Updated 7 hours ago
July 2 (Reuters) - The U.S. Federal Trade Commission said on Tuesday it will sue to block the $4 billion merger between mattress manufacturer Tempur Sealy International Inc (TPX.N) and retailer Mattress Firm. Tempur Sealy had announced the cash-and-stock deal in May 2023, seeking to add Mattress Firm's more than 2,300 brick-and-mortar store locations. The combined company would have about 3,000 stores globally.
The FTC voted 5-0 to block the deal, voicing concern about the effects on competition with rivals including Serta Simmons Bedding (SRTA.PK) and Purple Innovation Inc (PRPL.O) that could lead to higher prices for consumers and potential job losses for manufacturing workers.
"This deal isn’t about creating efficiencies; it’s about crippling the competition," said Henry Liu, head of the FTC's Bureau of Competition. Tempur Sealy said in a statement that it was disappointed with the regulator's decision and that the stores it would acquire are a small fraction of bedding retail locations in the U.S.
The bedding maker also said it had engaged with the unions that represent its employees and that none had opposed the deal. The vast majority of mattresses purchased in the U.S. are made domestically, with around $7.8 billion in sales last year, compared with around $809 million in imports, according to statistics compiled by the International Sleep Products Association. Tempur Sealy had expected to complete the deal this year. It now envisions resolving the litigation in the coming months and closing late this year or in early 2025.
Read more: https://www.reuters.com/legal/government/us-block-tempur-sealys-4-billion-mattress-firm-deal-2024-07-02/
Link to FTC PRESS RELEASE - FTC Moves to Block Tempur Sealy’s Acquisition of Mattress Firm
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