The fight for space in America's bedrooms is about to see a big change.
Before Eight Sleep, hyperbaric chambers, infrared light saunas and cold plunges became the trendy new way to restore and rejuvenate, it was just plain old mattresses.
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Then Tempur-Pedic came along, and, touting a NASA-developed cushioning, birthed the mainstream memory foam mattress. They caught on in part because they absorb an outsized amount of impact, minimizing damage and soreness to pressure points. We all remember those early 2000s commercials of the woman jumping on a corner of a Temper-Pedic while a glass of red wine remained completely intact on the other corner.
The company went public in 2003 and later merged with Sealy Corp to become Temper-Sealy (TPX) in 2012. The two companies largely operate separately.
Tempur-Sealy Buys Up a Big Player
Now, Tempur-Sealy has agreed to buy Mattress Firm, the largest bedding retailer in the U.S.
The conglomerate will pay $4 billion for the retailer -- roughly $2.7 billion in cash and $1.3 billion in company stock. The move is a strategic one, according to management, who seek to increase their footprint across the U.S. as competition from smaller rivals, like Casper (CSPR), grows.
“This transaction advances all four of our key long-term initiatives: to develop the highest quality bedding product, promote brands with compelling marketing, optimize our diverse omnichannel distribution platform and drive EPS [earnings per share] growth,” Tempur Sealy CEO Scott Thompson said in a statement. “Mattress Firm has been a valued retail partner for more than 35 years, and we look forward to welcoming their talented workforce of more than 8,100 employees to the Tempur Sealy family.”
The deal will give the new mega-company a combined 3,000 stores and 71 manufacturing facilities. But the two companies will still operate as a separate business unit.
In 2022, Mattress Firm filed for an IPO but ultimately abandoned the plan, blaming market volatility.
