Tempur Sealy International expressed strong disagreement with the Federal Trade Commission (FTC)'s decision to block its proposed $4 billion acquisition of Mattress Firm, asserting that the FTC's perspective is misguided. The company remains committed to completing the acquisition and believes that legal proceedings can resolve the matter, aiming to finalize the deal by late 2024 or early 2025.
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The FTC's decision, announced in a 5-0 vote, was met with disappointment from Tempur Sealy, which had been collaborating with the commission to obtain approval.
Tempur Sealy highlighted the industry's competitiveness, noting the myriad options available to consumers through numerous brick-and-mortar and online retailers. It defended the strategic rationale behind the acquisition, citing potential benefits such as enhanced innovation, improved customer experience, and operational efficiencies through synergies.
The FTC alleges that the merger would grant Tempur Sealy substantial power to stifle competition and increase mattress prices for consumers. According to the FTC, Tempur Sealy's plans to restrict competitors' access to Mattress Firm's extensive network of over 2,300 stores were revealed in internal documents and communications related to the acquisition.
Henry Liu, director of the FTC's Bureau of Competition, criticised Tempur Sealy's intentions, stating that the acquisition is aimed at crippling competitors rather than creating efficiencies.
Source: www.furnituretoday.com