Mattress Firm will be acquired by bedding company Tempur Sealy in a $4 billion cash and equity deal, the two firms said on Tuesday.
More than 2,300 physical stores, as well as an online store, are run by Mattress Firm.
The two businesses will have a combined total of almost 3,000 retail outlets, 30 e-commerce platforms, 71 manufacturing sites, and four research and development facilities once the Tempur Sealy acquisition is finalized.
In a statement, Tempur Sealy Chairman and CEO Scott Thompson claimed that the merger “will accelerate our growth trajectory and enhance operating cash flow.”
For more than 35 years, Mattress Firm has been a valuable retail partner. We are excited to welcome their 8,100 brilliant staff members to the Tempur Sealy family.
John Eck, CEO of Mattress Firm, noted that the deal will improve the businesses’ capacity “to address consumers’ needs better and drive growth.”
In the deal, the privately held Mattress Firm will get roughly $2.7 billion in cash and $1.3 billion in stock from Tempur Sealy.
Monday’s closing share price of $37.62 represents the issuance of 34.2 million common shares.
The firms anticipate finishing the deal in the second part of 2024. Mattress Firm will function as a separate business unit inside Tempur Sealy following the completion of the acquisition.
On Tuesday, Tempur Sealy also announced a first-quarter profit of $85.3 million on $1.21 billion in sales.
The mattress manufacturer in Kentucky reported a profit of 48 cents per share. After deducting one-time costs and gains, earnings per share came to 53 cents.
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