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Federal Judge Approves Tempur Sealy’s $4B Acquisition of Mattress Firm Despite FTC Objections

By  |  February 2, 2025

A federal judge on Friday cleared Tempur Sealy International’s  $4B takeover of Mattress Firm, rejecting the Federal Trade Commission’s claim that the combination would harm consumers.

U.S. District Judge Charles Eskridge ruled that the companies cannot close the transaction until Feb. 7 to give the FTC time to appeal the decision.

The judge did not disclose his reasons for the decision, which was filed under seal. He cited confidential and proprietary information for his ruling, adding that a redacted version of his full decision will be released Tuesday.

When the deal was first announced in May 2023, Tempur Sealing said it expected the deal to close in the second half of last year.

The FTC sought to block the deal, citing “multiple deal documents” that showed Tempur Sealy’s plans to limit rivals’ access to Mattress Firm and lose access to the single most important retail channel.

Related: FTC Sues to Block Tempur Sealy’s $4.3 Billion Acquisition of Mattress Firm

“We are pleased the court ruled in favor of completing our previously announced transaction with Tempur Sealy, which we expect to close in the near future,” Mattress Firm Chief Executive John Eck said in a statement to Seeking Alpha.
“We are pleased that the United States District Court for the Southern District of Texas has declined to enjoin our acquisition of Mattress Firm,” Tempur Sealy said in a statement to Seeking Alpha. “Despite the FTC’s ongoing efforts to block the transaction, we will make every effort to close it as soon as possible.”

The FTC did not immediately respond to a request for comment by Seeking Alpha.

Source: Seeking Alpha