Under the Mattress, Tempur Sealy Buys Mattress Firm in $4bn deal

Leading bedding maker Tempur Sealy International announced on Tuesday it would buy the US’s largest specialty mattress retailer, Mattress Firm, in a cash and stock deal with an enterprise value of $4bn. The Kentucky-based company announced the deal alongside first-quarter results on Tuesday where it beats by $0.02, reported revs in-line and reaffirmed FY23 EPS guidance. The deal is expected to be accretive and close in 2H24. TPX said the deal comprises $2.7bn in cash and $1.3bn in stock.

The Mattress Firm acquisition would give the combined company a footprint of about 3,000 stores globally, 30 online platforms and 71 manufacturing facilities. Tempur Sealy expects the deal to add to adjusted per-share earnings before synergies in the first year post-close.

Mattress Firm earlier this year scrapped plans for an initial public offering. Ina very competitive market with consumers strapped by inflation faced tough operating conditions as consumers defer spending on big-ticket items.

Market Reaction: Tempur Sealy International NYSE: TPX

  • $39.57 +1.95 (+5.18%) as of May 9, 2023 • 9:00 AM CDT
  • $39.57 +12.9 (48.37%) past year
  • $39.57 +28.303 (251.19%) past 5 years

Mattress Firm has 2,300 stores in the US, was bought in 2016 by South African retailer Steinhoff, which also owns Poundland in the UK. It’s website was also among the top five e-commerce destinations for mattresses in 2021, according to Statista.

Source: Tempur Sealy

From The TradersCommunity News Desk