Leaders explain how Tempur, Sealy will be combined
David Perry -- Furniture Today, March 18, 2013
ARCHDALE, N.C. — Tempur-Pedic's acquisition of Sealy will provide new opportunities for many employees of those two companies, their leaders say. They minimized talk of possible layoffs.
"There will be opportunities for many employees that didn't exist before," said Larry Rogers, the veteran Sealy leader who will continue to lead that brand.
Possible personnel cuts will be those that are "rather normal" in a merger of two major companies, Rogers said. There will be a move to combine assets in areas like information technology, he said.
He and Mark Sarvary, CEO of Tempur-Pedic International, met with Furniture/Today to provide details on how Tempur-Pedic's acquisition of Sealy, which has now been completed, will affect the two companies.
"The majority of our employees will find their roles unchanged and those in duplicate functions will be considered for other jobs in which they qualify," Sarvary said. "We anticipate that the merging of the two companies will actually expand the career opportunities for employees as the organization pursues high-growth strategies. The combined talent and expertise of our two workforces is truly astounding and will be critical in supporting the growth potential for our new company."
Plans call for combining Tempur-Pedic and Sealy in a new company called Tempur Sealy International. Tempur-Pedic's stockholders must approve that change.
Officials don't expect to see dramatic changes in operations of the two brands. Sales and marketing functions will remain separate for the foreseeable future, and production facilities will not see much difference in daily operations, they said. The company will be looking to integrate best practices in logistics and sourcing.
The new company will see an "attractive upside" from revenue synergies as a result of a broader product offering and access to more distribution channels, including international expansion, officials said.
A "strong cash flow" for the new company will enable "rapid debt reduction and continued investment in growth initiatives," officials said.
The focus of the new company will be on "consumer-driven product innovation" that will deliver the best quality of sleep, and on building strong retailer relationships. "We will continue to go to market as we always have independently, while looking for opportunities to better serve our retailers with increased distribution and delivery efficiency," Sarvary said.