Upstart online brand to merge with nation’s largest mattress maker
There is more disruption in the mattress market — and this one involves a legacy mattress company and a fast-growing, direct-to-consumer brand.
Serta Simmons Bedding — whose brands include Serta, Beautyrest, Simmons, and Tomorrow — is merging with Tuft & Needle. The terms of the deal were not disclosed.
“Combining SSB's nearly 150-year legacy and leadership in product innovation with Tuft & Needle's expertise in delivering a best-in-class consumer experience, this merger will greatly accelerate our growth and innovation in the direct-to-consumer segment, and significantly enhance our e-commerce capabilities across brands,” said Michael Traub, CEO, SSB. “Together we have a clear path to transform the consumer experience at scale as well as the future of the industry."
The deal comes as Tuft & Needle and other online upstarts such as Casper and Leesa have taken share away from Serta and other traditional mattress companies by offering generous return policies and free, bed-in-a-box deliveries. The nation’s largest mattress retailer, Mattress Firm, which operates some 3,400 stores, is reportedly mulling filing for Chapter 11 bankruptcy protection.
Tuft & Needle, which was founded in 2012, sells mattresses, bedding and bed furniture online. Similar to Casper, it has also entered the physical space. It has stores in Scottsdale and Gilbert, Arizona, and Seattle, with a location due to open later this year in Kansas City.
The co-founders of Tuft & Needle, JT Marino and Daehee Park, will report to Traub and join the SSB leadership team. In addition to leading Tuft & Needle, they will help drive the continued transformation of SSB into an omnichannel, consumer-centric company. The company will remain based in Phoenix.
"We started Tuft & Needle because we saw a clear opportunity for the mattress industry to put the customer at the center of everything it does,” said Marino. “By joining the SSB team, we look forward to fully leveraging each organization's strengths and accelerating our trajectory together towards the vision of being recognized as the global leader in sleep.”
Following the closure of the deal, the brands in the SSB portfolio will remain unique and independent, while sharing a commitment to innovation with distinctive products and differentiated consumer experiences across channels. All brands will continue to serve consumers through traditional retail as well as direct-to-consumer channels.
Serta Simmons Bedding — whose brands include Serta, Beautyrest, Simmons, and Tomorrow — is merging with Tuft & Needle. The terms of the deal were not disclosed.
“Combining SSB's nearly 150-year legacy and leadership in product innovation with Tuft & Needle's expertise in delivering a best-in-class consumer experience, this merger will greatly accelerate our growth and innovation in the direct-to-consumer segment, and significantly enhance our e-commerce capabilities across brands,” said Michael Traub, CEO, SSB. “Together we have a clear path to transform the consumer experience at scale as well as the future of the industry."
The deal comes as Tuft & Needle and other online upstarts such as Casper and Leesa have taken share away from Serta and other traditional mattress companies by offering generous return policies and free, bed-in-a-box deliveries. The nation’s largest mattress retailer, Mattress Firm, which operates some 3,400 stores, is reportedly mulling filing for Chapter 11 bankruptcy protection.
Tuft & Needle, which was founded in 2012, sells mattresses, bedding and bed furniture online. Similar to Casper, it has also entered the physical space. It has stores in Scottsdale and Gilbert, Arizona, and Seattle, with a location due to open later this year in Kansas City.
The co-founders of Tuft & Needle, JT Marino and Daehee Park, will report to Traub and join the SSB leadership team. In addition to leading Tuft & Needle, they will help drive the continued transformation of SSB into an omnichannel, consumer-centric company. The company will remain based in Phoenix.
"We started Tuft & Needle because we saw a clear opportunity for the mattress industry to put the customer at the center of everything it does,” said Marino. “By joining the SSB team, we look forward to fully leveraging each organization's strengths and accelerating our trajectory together towards the vision of being recognized as the global leader in sleep.”
Following the closure of the deal, the brands in the SSB portfolio will remain unique and independent, while sharing a commitment to innovation with distinctive products and differentiated consumer experiences across channels. All brands will continue to serve consumers through traditional retail as well as direct-to-consumer channels.