Tempur Sealy International will acquire Mattress Firm Group in a $4 billion cash and stock transaction, creating a company with a global footprint of approximately 3,000 stores, 30 ecommerce platforms, 71 manufacturing facilities and four R&D facilities, serving customers in more than 100 countries. The acquisition will be funded by approximately $2.7 billion in cash and $1.3 billion in stock and is projected to close in the second half of 2024.
Founded in 1986, Mattress Firm operates over 2,300 brick-and-mortar stores as well as its own ecommerce platform, employing 6,200 retail sales associates. The retailer was acquired by South African holding company Steinhoff International in August 2016, then filed for bankruptcy protection as part of a reorganization in October 2018. In January 2022, Mattress Firm filed for an IPO, but cited market volatility when it put those plans to bed one year later, clearing the path for an acquisition. Following to close of the acquisition by Tempur Sealy, Mattress Firm will continue to operate as a separate business unit within the company.
“This transaction advances all four of our key long-term initiatives: to develop the highest quality bedding product, promote brands with compelling marketing, optimize our diverse omnichannel distribution platform and drive EPS [earnings per share] growth,” said Scott Thompson, Chairman and CEO of Tempur Sealy in a statement. “Mattress Firm has been a valued retail partner for more than 35 years, and we look forward to welcoming their talented workforce of more than 8,100 employees to the Tempur Sealy family.”
“We know that every customer has unique needs and wants when it comes to a sleep solution that is perfect for them,” said John Eck, CEO of Mattress Firm in a statement. “As part of Tempur Sealy, our customers will benefit from our combined portfolio of highly recognized brands and products, extensive omnichannel capabilities, industry leading innovation and best-in-class teams.”