Tempur Sealy Sells Stores to Clear Path for $4 Billion Mattress Firm Deal

[Sanjeev Advani]

Tempur Sealy, the world's largest mattress supplier, is divesting 176 Mattress Firm and Sleep Outfitters stores to gain approval for its $4 billion acquisition of Mattress Firm. The deal with Mattress Warehouse addresses antitrust concerns raised by the FTC, which has challenged the merger, fearing it would stifle competition and raise prices.

Tempur Sealy expects the acquisition, combined with the divestiture, to solidify its market dominance, with over 2,800 retail locations worldwide. The FTC’s scrutiny reflects its broader efforts to curb retail mergers, including those involving Kroger and Tapestry. Hearings on the acquisition will begin in November, with the deal expected to close by late 2024.