Tempur Sealy’s $4 Billion Takeover of Mattress Firm

Tempur Sealy International’s proposed $4 billion acquisition of Mattress Firm has raised concerns about competitive practices, according to a recently unsealed document reviewed by a Texas judge.

Key Findings from the Document:

A May 2022 presentation intended for Tempur Sealy’s board revealed the strategic intentions behind the acquisition. The document, presented by an unnamed executive, stated that the takeover would help Tempur Sealy “eliminate future competition” and “block future competition.”

Scott Thompson, the current CEO of Tempur Sealy since 2015, is highlighted as a key figure in the company’s strategic decisions. The document was part of the evidence submitted by the U.S. Federal Trade Commission (FTC), which has raised objections to the deal.

FTC’s Concerns:

The FTC has sued to block the merger, citing several concerns:

• Impact on Competition: The merger could reduce market competition.
• Higher Prices for Consumers: The deal may lead to increased prices.
• Job Losses: There could be potential job losses for manufacturing workers.

Deal Details:

The acquisition, if approved, would significantly expand Tempur Sealy’s footprint, adding Mattress Firm’s 2,300-plus brick-and-mortar stores to its portfolio.

This could potentially lead to a more robust and competitive market, benefiting both the companies and the consumers. The combined entity would operate approximately 3,000 stores globally, offering a wider range of products and services.

Tempur Sealy, Mattress Firm, and the FTC have not yet commented on the latest developments regarding the deal.