It was recently announced that Tempur Sealy had filed a request with a Texas federal judge for a preliminary injunction to pause the Federal Trade Commission's (FTC) legal challenge to its $4 billion acquisition of Mattress Firm. The most recent reports now state that final arguments in the ongoing legal battle between the FTC and the company, along with Mattress Firm, are set for December 16 in the U.S. District Court for the Southern District of Texas.
Photo: Dreamstime.
The case will determine the fate of Tempur Sealy's proposed $4 billion acquisition of Mattress Firm, its largest retail partner. Initially announced in May 2023, the deal has been heavily scrutinized over concerns that it could harm competition in the mattress market.
Tempur Sealy and Mattress Firm share an eight-year business relationship. In anticipation of the merger, Tempur Sealy announced plans in late 2023 to sell off 176 Sleep Outfitters and Mattress Firm locations, a step designed to address antitrust issues. By September 2024, Mattress Warehouse had agreed to purchase these outlets.
The FTC has argued that the merger would reduce competition, accusing Tempur Sealy of aiming to dominate the market. Evidence cited in an August court filing includes internal communications and documents that depict Mattress Firm as a significant influence on the market's dynamics.
As the trial nears its conclusion, the court's ruling is expected to significantly impact the mattress industry and set a precedent for large-scale retail mergers.
Source: www.furnituretoday.com