Tempur Sealy to change its name; completes acquisition of Mattress Firm
The nation’s largest mattress specialty retailer has a new owner.
Tempur Sealy International has completed its acquisition of Mattress Firm Group Inc. The total purchase price was approximately $5 billion, which is about $1 billion more then when the deal was first announced. The move follows the ruling from the United States District Court for the Southern District of Texas denying the motion by the Federal Trade Commission to block the deal.
In a separate release, Tempur Sealy said it will change its name to Somnigroup International Inc., effective February 18, 2025, at which time its common stock will trade on the NYSE under ticker symbol "SGI". The name Somnigroup is derived from the Latin somn meaning sleep, omni meaning all, and "group" to represent the company's omni-channel strategy, according to Tempur Sealy CEO and chairman Scott Thompson.
Under the terms of the deal, Mattress Firm, Dreams and Tempur Sealy will operate as decentralized business units under Somnigroup International. Mattress Firm and Dreams will continue to operate as multi-branded retailers. Tempur Sealy, primarily a manufacturer, will continue to serve third-party retailers as well as Mattress Firm, Dreams and Tempur Sealy direct-to-consumer channels. Tempur Sealy, the world’s largest mattress supplier and manufacturer.
Tempur Sealy said it expects to complete its previously announced divestiture of 73 Mattress Firm stores and the company's Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers, to MW SO Holdings Company ("Mattress Warehouse") in the second quarter of 2025.
"The addition of Mattress Firm will unlock incremental benefits for all stakeholders by accelerating our U.S. omni-channel strategy," said Thompson. "This transaction creates a leading global bedding company with extensive manufacturing capabilities and a broader U.S. retail footprint."
Founded in 1986, Mattress Firm operates more than 2,300 stores in addition to an e-commerce site. Tempur Sealy’s brands include Tempur-Pedic, Sealy and Stearns & Foster, along with non-branded offerings consisting of private label and OEM products. The company’s products are sold through its 700-plus stores and e-commerce channels as well as third-party retailers.
With the closing of the sale and the divestiture, Tempur Sealy expects to operate over 2,800 retail locations worldwide and anticipates that half of its North American sales will come from the Mattress Firm operations. Together, Tempur Sealy and Mattress Firm's combined global footprint would include 71 manufacturing facilities, and four state-of-the-art R&D facilities worldwide.
Cleary Gottlieb Steen & Hamilton LLP and Beck Redden LLP served as legal counsel and J.P. Morgan Securities LLC served as sole financial advisor to the company.
Simpson Thacher & Bartlett LLP served as legal counsel and Goldman Sachs & Co. LLC, Barclays, and Jefferies LLC served as financial advisors to Mattress Firm.
