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(Reuters WASHINGTON (Reuters) – Tempur Sealy International Inc said Tuesday it has agreed to buy mattress retailer Mattress Firm in a cash-and-stock deal worth about $4 billion, as the leading bedding maker looks to grow its business and curb weaker sales following the pandemic .
Tempur Sealy Stock (NYSE: 71TPX
), means The transaction is expected to be completed in the second half of the , down 3% in premarket trading.
Tempur Sealy, one of the largest mattress manufacturers in the United States, said it received a request from the Federal Trade Commission for more information and documentation ask. It added that the company hopes to work with the FTC to complete the acquisition.
Mattress companies have had a slowdown in sales over the past few quarters, struggling to sustain the explosive demand growth seen in the early months of the pandemic, when consumer Those who have upgraded their homes.
Mattress Firm is partly owned by Steinhoff International Holdings NV, one of the largest bedding retailers in the United States with over 2, physical store Location. Its website is also among the mattress e-commerce destinations of
Lexington, Kentucky-based Tempur Sealy will pay Mattress Firm shareholders approximately $2.7 billion in cash and value, the companies said. $1.3 billion in Tempur stock. Upon completion of the transaction, Mattress Firm will operate as a separate business unit within Tempur Sealy.
The acquisition will allow the combined company to Covers an area of about 3, Global stores, online platform and 000 manufacturing facility. Tempur Sealy expects the transaction to be accretive to adjusted earnings per share, excluding synergies, in the first year after the transaction closes.
Tempur Sealy, which separately reported first-quarter sales in line with Wall Street expectations, said it would also expand its board and appoint Two mattress company directors close.
