LEXINGTON, Ky., July 2, 2024
/PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX,
"Company" or "Tempur Sealy") today issued the following statement
regarding the press release issued by the U.S. Federal Trade
Commission ("FTC") announcing that it would be challenging the
proposed combination of Tempur Sealy and Mattress Firm Group Inc.
("Mattress Firm").
"Tempur Sealy has been working constructively with the FTC to
secure regulatory approval for this transaction and is disappointed
that the FTC has initiated litigation. We appreciate their efforts
to understand the industry and the proposed transaction, but
ultimately believe the FTC's perspective does not reflect all the
relevant facts and law.
"The bedding industry is highly competitive, offering consumers
a diverse selection of products, brands, price points, and
purchasing channels. There are thousands of brick-and-mortar
storefronts across the United
States where consumers can purchase bedding products, only a
small fraction of which are operated by Mattress Firm.
Additionally, brick-and-mortar retailers and direct-to-consumer
bedding brands sell millions of bedding products online each
year.
"We continue to believe the combination of Tempur Sealy and
Mattress Firm will unlock incremental benefits for all
stakeholders, particularly consumers. Mattress Firm's strong retail
presence complements Tempur Sealy's manufacturing capabilities,
facilitating more targeted innovation, improving the customer
experience, and broadening our U.S. omni-channel platform.
Additionally, we expect to achieve synergies by leveraging our
global scale and vertically integrated infrastructure to drive
efficiencies through logistics, product lifecycle management,
manufacturing optimization and sourcing initiatives. All of these
factors will allow us to further execute on Tempur Sealy's mission
to improve people's lives through better sleep.
"We manufacture one hundred percent of the mattresses we sell
domestically in the United States,
supporting the domestic workforce with thousands of jobs. We have
discussed the transaction with the labor unions representing our
employees and none have expressed opposition to the transaction. In
fact, most of the unions have submitted letters of support,
believing that the transaction will benefit their members and not
adversely impact workers of other bedding companies that they
represent.
"We are and have been open to appropriate commitments to address
FTC concerns. Consistent with our operation of the multiple bedding
retailers we have acquired in Europe, Mattress Firm will remain a
multi-branded retailer, and we have already engaged with numerous
Mattress Firm suppliers on post-merger supply agreements and have
executed several agreements. In keeping with our multi-brand
strategy, we have also offered a guaranteed slot commitment for
third-party manufacturers at Mattress Firm stores. Lastly, we have
been open to a divestiture of stores and supporting
infrastructure.
"We are confident in the procompetitive rationale for this
transaction and look forward to presenting the many benefits of the
combination. We believe that a successful litigation process can be
completed in the coming months, which would allow us to close the
transaction in late 2024 or early 2025."
Tempur Sealy intends to conduct a public conference call shortly
after the FTC's complaint is publicly available.
Forward-Looking Statements
This press release contains statements that may be characterized
as "forward-looking" within the meaning of the federal securities
laws. Such statements might include information concerning one or
more of the Company's plans, guidance, objectives, goals,
strategies, and other information that is not historical
information. When used in this release, the words "will,"
"expects," "plans," "proposed," and variations of such words or
similar expressions are intended to identify forward-looking
statements. These forward-looking statements include, without
limitation, statements relating to the Company's expectations
regarding the outcome of the pending litigation with the FTC, the
expected Mattress Firm acquisition including expectations regarding
post-closing supply agreements, future performance, integration of
acquired companies with our business and the ability of the Company
to close the acquisition on the timeline indicated or at all as
well as the expected divestiture of Sleep Outfitters. Any
forward-looking statements contained herein are based upon current
expectations and beliefs and various assumptions. There can be no
assurance that the Company will realize these expectations or that
these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from any
that may be expressed herein as forward-looking statements. These
potential risks include risks associated with satisfaction of
closing conditions prior to consummation of the acquisition,
including the outcome of the pending litigation with the FTC, or
the ability to obtain the required financing for the acquisition;
Mattress Firm's ongoing operations; the ability to successfully
integrate Mattress Firm into Tempur Sealy's operations and realize
synergies from the transaction; the possibility that the expected
benefits of the acquisition are not realized when expected or at
all; general economic, financial and industry conditions,
particularly conditions relating to the financial performance and
related credit issues present in the retail sector, as well as
consumer confidence and the availability of consumer financing; the
impact of the macroeconomic environment in both the U.S. and
internationally on Mattress Firm and the Company; uncertainties
arising from national and global events; industry competition; the
effects of consolidation of retailers on revenues and costs; and
consumer acceptance and changes in demand for Mattress Firm's and
the Company's products and services and the factors discussed in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2023. There may be other
factors that may cause the Company's actual results to differ
materially from the forward-looking statements. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such
statement is made.
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people,
every night, all around the world. As a leading designer,
manufacturer, distributor, and retailer of bedding products
worldwide, we know how crucial a good night of sleep is to overall
health and wellness. Utilizing over a century of knowledge and
industry-leading innovation, we deliver award-winning products that
provide breakthrough sleep solutions to consumers in over 100
countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and
Stearns & Foster® and our popular non-branded offerings consist
of value-focused private label and OEM products. At Tempur
Sealy we understand the importance of meeting our customers
wherever and however they want to shop and have developed a
powerful omni-channel retail strategy. Our products allow for
complementary merchandising strategies and are sold through
third-party retailers, our over 750 Company-owned stores worldwide
and our e-commerce channels. With the range of our offerings
and variety of purchasing options, we are dedicated to continuing
to turn our mission to improve the sleep of more people, every
night, all around the world into a reality.
Importantly, we are committed to carrying out our global
responsibility to protect the environment and the communities in
which we operate. As part of that commitment, we have established
the goal of achieving carbon neutrality for our global wholly owned
operations by 2040.
Tempur Sealy Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.