Tempur Sealy International, Inc. (NYSE: TPX) has provided an update on its proposed acquisition of Mattress Firm Group Inc. Despite the ongoing litigation process, the company believes a successful resolution could lead to the transaction closing in late 2024 or early 2025, in line with previous expectations.
In conjunction with the planned acquisition, Tempur Sealy has entered into a purchase agreement with MW SO Holdings Company, LLC (Mattress Warehouse) to divest 73 Mattress Firm retail locations and its Sleep Outfitters subsidiary, including 103 specialty mattress retail locations and seven distribution centers. This divestiture is expected to close approximately one quarter after the completion of the Mattress Firm transaction.
Upon the closing of the Mattress Firm transaction and the divestiture, Tempur Sealy expects to operate over 2,800 retail locations worldwide and anticipates that half of its North American sales will come from the Mattress Firm operations. The company also continues to anticipate annual run-rate synergies of $100 million by the end of year four post-closing the Mattress Firm transaction. Today the company's shares have moved -1.7% to a price of $53.77. If you want to know more, read the company's complete 8-K report here.
