FTC approval clears way for Tempur-Pedic, Sealy merger

Larry Thomas -- Furniture Today, March 8, 2013

LEXINGTON, Ky. — Bedding major Tempur-Pedic said Friday the Federal Trade Commission has approved its proposed acquisition of rival Sealy Inc.

FTC clearance was the last major hurdle preventing the deal from being finalized, and Tempur-Pedic said it expects to close the acquisition on March 18.

"I am pleased that the FTC has concluded its review and we can complete the acquisition of Sealy," said Tempur-Pedic CEO Mark Sarvary. "The combination of Tempur-Pedic and Sealy unites two highly complementary companies with iconic brands to create the first full spectrum, global bedding company that addresses all market segments and consumer preferences."

Tempur-Pedic has agreed to pay $2.20 per share for Sealy, and also will assume all of Sealy's outstanding convertible and non-convertible debt. That brings the total value of the transaction to about $1.3 billion.

Sealy had worldwide sales of $1.35 billion for the fiscal year ending Dec. 2. Tempur-Pedic's worldwide sales totaled $1.4 billion for the 2012 calendar year.

Tempur-Pedic is best known for its high-end memory foam mattresses and pillows, while Sealy primarily is a producer of innerspring bedding. It is best known for its Sealy Posturepedic and Stearns & Foster innerspring brands.