Tempur Sealy to Sell Retail Locations in Bid for Merger
Tempur Sealy International, in the process of acquiring the Mattress Firm chain, is looking to put some stores on the cutting block.
Tempur Sealy touts itself as the world’s largest bedding provider with brands that include Tempur-Pedic, Stearns & Foster and Sealy.
“The company said that it will sell 73 Mattress Firm stores and the company’s Sleep Outfitters subsidiary, which includes 103 stores and seven distribution centers, to bedding retailer Mattress Warehouse, following the completion of its proposed acquisition of Mattress Firm,” according to a report in Chain Store Age.
In July, the Federal Trade Commission unanimously voted to block the proposed acquisition amid concerns that it would suppress competition and raise prices for mattress buyers and give the companies “enormous power” in the mattress supply chain, according to the article.
Upon the closing of the Mattress Firm transaction and this divestiture, Tempur Sealy expects to operate over 2,800 retail locations worldwide and anticipates that half of its North American sales will come from the Mattress Firm operations. Together, Tempur Sealy and Mattress Firm's combined global footprint would include 71 manufacturing facilities, and 4 state-of-the-art R&D facilities worldwide, also according to the article.