Tempur Sealy to Divest Over 100 Stores in Effort to Finalize $4 Billion Mattress Firm Deal, According to Reuters

Tempur Sealy International announced on Monday its intention to sell over 100 stores in order to secure regulatory approval for its $4 billion acquisition of Mattress Firm.

The merger with Mattress Firm, which would consolidate approximately 3,000 stores worldwide, has sparked concerns regarding potential price increases and job losses. Consequently, the U.S. Federal Trade Commission initiated a lawsuit in July to block the merger.

To alleviate regulatory concerns, Tempur Sealy plans to divest 73 Mattress Firm locations to the independently operated bedding specialty retailer, Mattress Warehouse. Additionally, it will sell 103 specialty mattress retail stores operating under the Sleep Outfitters brand, along with seven distribution centers.

The sale is contingent upon the completion of the deal with Mattress Firm. Tempur Sealy confirmed that it will continue to supply its products to the Mattress Firm and Sleep Outfitters locations being sold.

The litigation hearing with the U.S. FTC is set to commence on November 12 and is anticipated to last for two weeks.

In a separate announcement, Tempur Sealy disclosed that it has secured a term loan agreement for $1.6 billion to help finance its cash-and-stock acquisition of Mattress Firm, which includes more than 2,300 physical store locations.