A federal court in Houston has ruled in favour of a $4 billion acquisition deal, allowing it to move forward despite regulatory opposition.
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Tempur Sealy International has been cleared to acquire Mattress Firm following a ruling by the United States District Court for the Southern District of Texas. The decision was a great a deal of concern, for the subsequent impact it could have on the mattress industry. The decision, issued under seal, denied the Federal Trade Commission's (FTC) request to halt the transaction. The court also extended a temporary restraining order by seven days, giving the FTC time to appeal the ruling to the Fifth Circuit Court of Appeals if it chooses.
The order was sealed due to the confidential nature of information submitted by Tempur Sealy, Mattress Firm, and other industry players. A redacted version of the ruling is expected to be released next week.
Tempur Sealy expressed satisfaction with the outcome, stating: 'Despite the FTC's ongoing efforts to block the transaction, we will make every effort to close it as soon as possible.' The acquisition is now expected to proceed without further delay, unless the FTC successfully appeals the ruling.
Source: www.furnituretoday.com