- The litigation process is progressing; hearing dates set to
begin in November 2024
- Executed agreement with Mattress Warehouse to divest certain
Mattress Firm and Sleep Outfitters retail locations, subject to
closing the Mattress Firm acquisition
LEXINGTON, Ky., Sept. 23,
2024 /PRNewswire/ -- Tempur Sealy International,
Inc. (NYSE: TPX, "Company" or "Tempur Sealy") today provided
an update with respect to the Company's agreement to acquire
Mattress Firm Group Inc. ("Mattress Firm"), which is currently
being challenged in federal court by the Federal Trade Commission
("FTC").
The litigation process continues to progress, with hearings
currently scheduled to begin on November 12,
2024, and expected to last two weeks. The Company continues
to believe that a successful litigation process can be completed in
the coming months, which would allow the transaction to close in
late 2024 or early 2025, consistent with previous expectations.
In conjunction with the planned Mattress Firm acquisition,
Tempur Sealy has entered into a purchase agreement with MW SO
Holdings Company, LLC ("Mattress Warehouse"), a leading
independently owned bedding specialty retailer, for the sale of 73
Mattress Firm retail locations and the Company's Sleep Outfitters
subsidiary, which includes 103 specialty mattress retail locations
and seven distribution centers.
Mattress Warehouse is a multi-branded retailer offering a full
array of mattresses at various price points. Tempur Sealy will
continue to supply its Tempur-Pedic, Stearns & Foster, and
Sealy products to the divested Mattress Firm and Sleep Outfitters
stores. The divestiture is subject to the closing of Tempur Sealy's
acquisition of Mattress Firm and other customary closing
conditions. It is expected to close approximately one quarter after
the closing of the Mattress Firm transaction.
Company Chairman and CEO Scott
Thompson commented, "As part of our engagement with the FTC
on the proposed acquisition of Mattress Firm, we conducted a
divestiture process, which led to an agreement with Mattress
Warehouse, a company with extensive mattress retail experience, a
strong capital base, and a capable leadership team."
"We are excited to welcome these stores and their talented teams
into the Mattress Warehouse family," said Bill Papettas, CEO of
Mattress Warehouse. "With our proven track record of growth and
operational excellence, we are confident in the successful
integration of these new locations into our expanding portfolio.
This acquisition not only strengthens our market position but also
enhances opportunities for our team members, vendor partners, and,
most importantly, our customers, helping them live better lives
through quality sleep."
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. The Company
continues to expect to realize annual run-rate synergies of
$100 million by the end of year four
after closing the Mattress Firm transaction.
Forward-Looking Statements
This press release contains statements that may be characterized
as "forward-looking" within the meaning of the federal securities
laws. Such statements might include information concerning one or
more of the Company's plans, guidance, objectives, goals,
strategies, and other information that is not historical
information. When used in this release, the words "will,"
"expects," "plans," "proposed," "believes" and variations of such
words or similar expressions are intended to identify
forward-looking statements. These forward-looking statements
include, without limitation, statements relating to the Company's
expectations regarding the outcome of the pending litigation with
the FTC, the expected Mattress Firm acquisition including
expectations regarding post-closing supply agreements, future
performance, integration of acquired companies with our business
and the ability of the Company to close the Mattress Firm
acquisition as well as the pending divestiture to Mattress
Warehouse on the timeline indicated or at all. Any forward-looking
statements contained herein are based upon current expectations and
beliefs and various assumptions. There can be no assurance that the
Company will realize these expectations or that these beliefs will
prove correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from any
that may be expressed herein as forward-looking statements. These
potential risks include risks associated with satisfaction of
closing conditions prior to consummation of the acquisition,
including the outcome of the pending litigation with the FTC, or
the ability to obtain the required financing for the acquisition;
Mattress Firm's ongoing operations; the ability to successfully
integrate Mattress Firm into Tempur Sealy's operations and realize
synergies from the transaction; the possibility that the expected
benefits of the acquisition are not realized when expected or at
all; general economic, financial and industry conditions,
particularly conditions relating to the financial performance and
related credit issues present in the retail sector, as well as
consumer confidence and the availability of consumer financing; the
impact of the macroeconomic environment in both the U.S. and
internationally on Mattress Firm and the Company; uncertainties
arising from national and global events; industry competition; the
effects of consolidation of retailers on revenues and costs; and
consumer acceptance and changes in demand for Mattress Firm's and
the Company's products and services and the factors discussed in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2023 and Quarterly
Report on Form 10-Q for the quarter ended June 30, 2024. There may be other factors that
may cause the Company's actual results to differ materially from
the forward-looking statements. The Company undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is
made.
About the Company
Tempur Sealy is committed to improving the sleep of more people,
every night, all around the world. As a leading designer,
manufacturer, distributor, and retailer of bedding products
worldwide, we know how crucial a good night of sleep is to overall
health and wellness. Utilizing over a century of knowledge and
industry-leading innovation, we deliver award-winning products that
provide breakthrough sleep solutions to consumers in over 100
countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and
Stearns & Foster® and our popular non-branded offerings consist
of value-focused private label and OEM products. At Tempur Sealy we
understand the importance of meeting our customers wherever and
however they want to shop and have developed a powerful
omni-channel retail strategy. Our products allow for complementary
merchandising strategies and are sold through third-party
retailers, our 750+ Company-owned stores worldwide and our
e-commerce channels. With the range of our offerings and variety of
purchasing options, we are dedicated to continuing to turn our
mission to improve the sleep of more people, every night, all
around the world into a reality.
Importantly, we are committed to carrying out our global
responsibility to protect the environment and the communities in
which we operate. As part of that commitment, we have established
the goal of achieving carbon neutrality for our global wholly owned
operations by 2040.
Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.