Tempur Sealy to buy Mattress Firm in $4bn deal

Tempur Sealy International said on Tuesday that it has agreed to buy Mattress Firm in a cash and stock deal valued at around $4bn.

Mattress Firm is the largest mattress specialty retailer in the US, operating more than 2,300 brick-and-mortar retail locations and a growing e-commerce platform.

Following completion of the deal, which is expected in the second half of next year, Mattress Firm will operate as a separate business unit within the company, Tempur said.

Tempur Sealy chairman and chief executive Scott Thompson said: "This transaction advances all four of our key long-term initiatives: to develop the highest quality bedding products, promote brands with compelling marketing, optimise our diverse omnichannel distribution platform, and drive EPS growth.

"Consistent with our M&A strategy, this acquisition will make Tempur Sealy more competitive by bringing us closer to consumers and facilitating continued innovation."