Breaking News: Tempur Sealy to acquire bedding retailer Mattress Firm for $4 billion

Deal is expected to close in second half of 2024; Mattress Firm would operate as a separate business unit

LEXINGTON, Ky. — Bedding giant Tempur Sealy International Inc. and Mattress Firm Group Inc. announced that Tempur Sealy has signed a definitive agreement to acquire Mattress Firm, the nation’s largest mattress specialty retailer, in a cash and stock transaction valued at approximately $4 billion.

Expected to close in the second half of 2024, it is expected to be funded by $2.7 billion of cash consideration and $1.3 billion in stock consideration issued to Mattress Firm shareholders. This reflects the issuance of 34.2 million shares of common stock based on a closing share price of $37.62 on May 8. The deal is subject to customary closing conditions, including various regulatory approvals.

After the closing, Mattress Firm would operate as a separate business unit within the company, officials said. It is currently the largest specialty mattress retailer in the U.S. with more than 2,300 brick-and-mortar locations and a growing e-commerce platform, the companies said. It also employs more than 6,200 retail sales associates.

Tempur Sealy is a major mattress manufacturer whose brands include Tempur-Pedic, Sealy and Stearns & Foster among other nonbranded offerings including private label and OEM products.

In a statement, Tempur Sealy Chairman and CEO Scott Thompson said, “This transaction advances all four of our key long-term initiatives: to develop the highest quality bedding products, promote brands with compelling marketing, optimize our diverse omnichannel distribution platform, and drive EPS growth. Consistent with our M&A strategy, this acquisition will make Tempur Sealy more competitive by bringing us closer to consumers and facilitating continued innovation.”

He added, “We are excited by the long-term growth prospects for our global vertically integrated company. This combination will accelerate our growth trajectory and enhance operating cash flow. Mattress Firm has been a valued retail partner for more than 35
years, and we look forward to welcoming their talented workforce of more than 8,100 employees to the Tempur Sealy family.”

Mattress Firm CEO John Eck said the merger will allow the combined company to better serve customers well into the future.

“We know that every customer has unique needs and wants when it comes to a sleep solution that is perfect for them. As part of Tempur Sealy, our customers will benefit from our combined portfolio of highly recognized brands and products, extensive omnichannel capabilities, industry leading innovation and best-in-class teams. Under Tempur Sealy’s leadership, our combined company will be in a unique position to take advantage of our shared values and complementary capabilities to better address consumers’ needs and drive growth.”

Home News Now will update this story as more details become available.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at and at 336-508-4616.

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