HomeInvestmentsTempur Sealy’s $4 Billion Acquisition of Mattress Firm Blocked by FTC

Tempur Sealy’s $4 Billion Acquisition of Mattress Firm Blocked by FTC

Mattress manufacturer Tempur Sealy’s previously announced $4 billion acquisition of retailer Mattress Firm is under threat after the Federal Trade Commission (FTC) made a unanimous ruling on Tuesday to block the deal.

Tempur Sealy is the largest mattress manufacturer in the world while its brands like Stearns & Foster and Tempur-Pedic account for more than 25% of mattress sales in the United States. Mattress Firm, on the other hand, is the largest retailer of mattresses in the nation. The initial merger of the two companies was announced in May 2023 with the close date being set for late 2024 or early 2025.

In a statement made after the ruling, Henry Liu, director of the FTC’s Bureau of Competition, said that the proposed acquisition would “kneecap competitors,” raise prices and lead to layoffs.

Tempur Sealy could potentially limit rivals’ access to floor space in Mattress Firm’s brick-and-mortar locations, entice customers in various other ways to steer away from competition and hike the price of its products.

“Through emails, presentations, and other deal documents, Tempur Sealy has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” Liu shared. “This deal isn’t about creating efficiencies; it’s about crippling the competition, which would raise prices on an essential good and could lead to layoffs for good paying American manufacturing jobs in nearly a dozen states.”

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