Mattress Warehouse, based in Frederick, Maryland, has agreed to purchase 107 Sleep Outfitters stores, 73 Mattress Firm locations, and seven distribution centres from Tempur Sealy International. This divestiture comes as part of Tempur Sealy's $4 billion proposed acquisition of Mattress Firm, a deal currently under scrutiny by the Federal Trade Commission (FTC) because it's supposedly intended to 'eliminate the competition.'
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The acquisition of these locations is contingent upon the closing of Tempur Sealy's purchase of Mattress Firm, which is facing legal challenges. Federal court hearings are scheduled to begin in November 2024, and Tempur Sealy remains confident that the case will be resolved successfully, allowing the Mattress Firm acquisition to close by late 2024 or early 2025.
Mattress Warehouse, which operates over 320 stores and plans to reach 500 locations by 2028, sees this deal as a strategic opportunity.
Upon the completion of both the Mattress Firm acquisition and the sale of these stores, Tempur Sealy expects to operate over 2,800 retail locations globally, with half of its North American sales coming from Mattress Firm. Tempur Sealy also announced a proposed $1.6 billion loan to support the acquisition. The company expects to achieve $100 million in annual synergies by the fourth year after closing the Mattress Firm deal.
Source: www.furnituretoday.com