Lexington, Ky. — Tempur Sealy International, Inc. has completed its previously announced acquisition of Mattress Firm Group Inc. (Mattress Firm), the nation’s largest mattress specialty retailer, for approximately $5 billion. Additionally, Tempur Sealy will change its name to Somnigroup International Inc., effective February 18, 2025.
Mattress Firm, Dreams and Tempur Sealy will operate as decentralized business units under Somnigroup International. Mattress Firm and Dreams will continue to operate as multi-branded retailers and Tempur Sealy, primarily a manufacturer, will continue to serve third-party retailers as well as Mattress Firm, Dreams and Tempur Sealy direct-to-consumer channels.
“We have collaborated with Mattress Firm for over 35 years, and we are thrilled to welcome them into the Tempur Sealy, soon Somnigroup, organization,” says Scott Thompson, chairman and CEO of Tempur Sealy. “The addition of Mattress Firm will unlock incremental benefits for all stakeholders by accelerating our U.S. omnichannel strategy. This transaction creates a leading global bedding company with extensive manufacturing capabilities and a broader U.S. retail footprint. Together, the companies are positioned to facilitate enhanced product innovation, improve the customer buying experience, and ensure high-quality, durable products are brought to market.”
The total purchase price was approximately $5 billion. The transaction was funded by approximately $2.7 billion of cash consideration (subject to adjustments, including the repayment of Mattress Firm’s debt and other customary items) and 34.2 million shares of common stock. The cash payment was funded using a combination of cash on hand and proceeds from existing borrowings.
The company expects to complete the previously announced divestiture of 73 Mattress Firm retail locations and the company’s Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers, to MW SO Holdings Company, LLC (Mattress Warehouse) in the second quarter of 2025.
Cleary Gottlieb Steen & Hamilton LLP and Beck Redden LLP served as legal counsel, and J.P. Morgan Securities LLC served as sole financial advisor to the company. Simpson Thacher & Bartlett LLP served as legal counsel, and Goldman Sachs & Co. LLC, Barclays, and Jefferies LLC served as financial advisors to Mattress Firm.
Tempur Sealy is a leading designer, manufacturer, distributor and retailer of bedding products worldwide. Its highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster®, which are sold through third-party retailers and through more than 750 company-owned stores worldwide and e-commerce channels. Tempur Sealy has established the goal of achieving carbon neutrality for its global wholly owned operations by 2040.
SOURCE: Tempur Sealy International, Inc.