Global bed and mattress manufacturer Tempur Sealy International, Inc. has provided an update with respect to its acquisition of Mattress Firm Group Inc.
On 9 May 2023, Tempur Sealy signed a definitive agreement to acquire Mattress Firm, the largest mattress specialty retailer in the U.S. The Company continues to work with the Federal Trade Commission (FTC) to advance the transaction, and now expects that the FTC will complete its review by the end of the second quarter.
Consistent with previous expectations, the Company continues to expect the transaction to close in mid to late 2024.
Tempur Sealy and Mattress Firm continue to make joint progress in planning for post-closing, including solidifying Mattress Firm’s key supplier relationships ahead of the expected closing.
Since announcing the acquisition, Tempur Sealy has executed post-closing supply agreements with six other mattress manufacturers, including Purple Innovation, Inc. These contracts are consistent with the Company’s plan for Mattress Firm to continue as a multi-branded retailer.
Scott Thompson, Tempur Sealy Chairman and CEO, commented: “Since announcing the acquisition in May, Tempur Sealy has signed post-closing supply agreements with numerous existing Mattress Firm suppliers, as well as a new supply agreement with a manufacturer not currently supplying Mattress Firm.
“We have engaged a critical mass of suppliers to provide a robust and diverse offering of high quality bedding products to Mattress Firm customers. These developments are consistent with our plan and expectation that Mattress Firm will continue as a multi-branded retailer post-closing.
“We look forward to working with quality suppliers and the Mattress Firm organization to facilitate continued innovation and improve the sleep of consumers.”
In a separate statement from Purple, the company said it has entered into a settlement agreement with Tempur Sealy. The parties have agreed to a post-acquisition framework for Purple’s partnership with Mattress Firm Inc., subject to FTC approval of TSI’s acquisition of Mattress Firm, and amicably resolved their various intellectual property disputes.
“Purple is pleased to reaffirm its valid patent and trademark rights in and to its proprietary Hyper-Elastic Polymer® gel material, the key component in Purple’s GelFlex® Grid,” the company said.
“If the FTC does not object to Tempur Sealy’s acquisition of Mattress Firm, Tempur Sealy agrees that Purple will retain its current relationship with Mattress Firm for a minimum of 12 months, versus the two-month commitment in place previously.”
Rob DeMartini, CEO of Purple Innovation, added: “Mattress Firm is an important and respected partner. We believe our Purple brand and products bring a high number of unique consumers into Mattress Firm stores. We appreciate working on an even playing field today and want to continue to work collaboratively with Mattress Firm. This agreement will give us time to explore expansion opportunities.”
Purple and Tempur Sealy have also agreed to amicably resolve all differences regarding their various intellectual property disputes. Although the specific terms of the deal are confidential, Purple retains all control and ownership over its brand, its patented mattress technology and its Hyper-Elastic Polymer and GelFlex Grid marks.
Rob said: “The marketplace’s interest in gel technology recognizes the strength of what makes Purple’s unmatched sleep innovation disruptive and cutting edge, and the best way of delivering deep, uninterrupted sleep. We are pleased to focus on expanding Purple’s business and bringing the many benefits of our GelFlex Grid to more customers.”
