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US: Mega mattress merger means big shift in the market

By  |  March 5, 2013

Tempur-Pedic and Sealy, two of the nation’s largest mattress companies, have announced plans to merge and sources say the Federal Trade Commission could rule on the acquisition as early as this week. The transaction would involve Tempur-Pedic buying Sealy for $242 million while simultaneously taking on the company’s $750 million in debt. The merger comes in the midst of a shift within the industry, according to reports; if the merger is to be approved, it would result in two companies – Sealy-Tempur-Pedic and Serta/Simmons – having 60 percent of control of the mattress market in the nation. Five years ago, say reports, no mattress company held more than 20 percent of market share. While experts polled on this case are not unanimous, most agreed the deal is likely to be eventually approved.

 

Full Content: Reuters

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