Tempur Sealy International, Inc. (NYSE: TPX) has issued a statement in response to the press release from the U.S. Federal Trade Commission (FTC) announcing its challenge of the proposed acquisition of Mattress Firm Group Inc. by Tempur Sealy.
The company expressed disappointment with the FTC's decision to initiate litigation and emphasized the highly competitive nature of the bedding industry, highlighting the diverse selection of products, brands, price points, and purchasing channels available to consumers.
In terms of financial performance, Tempur Sealy reported that it manufactures 100% of the mattresses it sells domestically in the United States, supporting thousands of jobs. The company also mentioned that it has discussed the transaction with labor unions representing its employees, with most unions expressing support for the transaction.
Furthermore, the company emphasized its willingness to address FTC concerns, including commitments to keep Mattress Firm as a multi-branded retailer, engage with numerous Mattress Firm suppliers on post-merger supply agreements, and offer a guaranteed slot commitment for third-party manufacturers at Mattress Firm stores. Tempur Sealy also stated its openness to a divestiture of stores and supporting infrastructure.
Looking ahead, Tempur Sealy expressed confidence in the procompetitive rationale for the transaction and indicated its readiness to present the benefits of the combination during the litigation process. The company anticipates that a successful litigation process could lead to the closure of the transaction in late 2024 or early 2025.
Tempur Sealy International, Inc. intends to conduct a public conference call shortly after the FTC's complaint becomes publicly available.
The company's financial metrics and performance indicators, including revenue, profit, and market share, were not explicitly mentioned in the press release. The market has reacted to these announcements by moving the company's shares 2.4% to a price of $48.32. For more information, read the company's full 8-K submission here.