Lexington, KY – Tempur-Pedic, the high-end, Lexington-based memory-foam mattress maker has bought the 131-year-old North Carolina-based Sealy for $2.20 a share of outstanding stock while assuming the company’s debt. The total transaction value is approximately $1.3 billion.
Expected to close in the first half of 2013, the deal is still subject to regulatory review, but has cleared the hurdles of both companies’ boards.
"This is a transformational deal that brings together two great companies, each with globally recognized brands. Tempur-Pedic and Sealy together will have products for almost every consumer preference and price point, distribution through all key channels, in-house expertise on most key bedding technologies, and a world-class research and development team,” said Tempur-Pedic’s CEO Mark Sarvary in a joint release from the companies. “Our global footprint will span over 80 countries. The shared know-how and improved efficiencies of the combined company will result in tremendous value for our consumers, retailers and shareholders."
Sealy, a maker of mattresses from low-cost entry-level, to top of the line under its Stearns & Foster brand, will continue to operate independently and its CEO, Larry Rogers, will remain with the company post acquisition and will report from North Carolina to Sarvary in Lexington.
In the 2011 fiscal year Sealy had $1.2 billion in sales.
Business Lexington has requested comment from Tempur-Pedic through its New York-based media representatives.