Tempur Sealy Successfully Completes Acquisition of Mattress Firm

Core Viewpoint - Tempur Sealy International, Inc. will change its name to Somnigroup International Inc. to reflect its accelerated omni-channel strategy following the acquisition of Mattress Firm, the largest mattress specialty retailer in the U.S. [1][2] Group 1: Acquisition Details - The acquisition of Mattress Firm was completed for approximately $5 billion, funded by$2.7 billion in cash and 34.2 million shares of common stock [6]. - On a pro forma basis, the company generated about $8 billion in sales over the twelve months ending December 31, 2024, with 85% from North America and 15% from international markets [3]. - The company plans to divest 73 Mattress Firm retail locations and its Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers, to MW SO Holdings Company, LLC in the second quarter of 2025 [7]. Group 2: Strategic Implications - The acquisition is expected to enhance the company's U.S. omni-channel strategy, creating a leading global bedding company with extensive manufacturing capabilities and a broader retail footprint [4]. - The company aims to improve product innovation and customer buying experience through the integration of Mattress Firm [4]. - The addition of Peter Sachse to the Board of Directors is anticipated to provide valuable insights and support for the company's growth strategy [6]. Group 3: Financial Performance and Market Position - The company reported an 80% increase in stock price since the announcement of the acquisition, reflecting shareholder confidence in the long-term strategy [5]. - Approximately 65% of the company's sales come from direct-to-consumer channels, while 35% are from third-party retailers [3].