Lexington, KY - Tempur-Pedic International has completed its previously announced acquisition of Trinity, North Carolina-based Sealy.
The combined company will be named Tempur Sealy International, Inc, and it becomes the largest bedding company in the world with brands such as Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster.
Announced in late September, Tempur is paying $1.3 billion to purchase of the 131 year-old Sealy. The company will be traded on the New York Stock Exchange under Tempur-Pedic’s existing TPX.
"We are pleased to announce the completion of our acquisition of Sealy and are very excited about our future as Tempur Sealy International," Lexington-based CEO Mark Sarvary said in a statement. "We remain confident that our shared know-how and expected efficiencies will result in tremendous value. Our focus now is on ensuring that our integration process remains on track and is as seamless as possible for all of our employees, customers and other stakeholders."
The company states it will be able to create significant shareholder value with annual cost synergies in excess of $40 million expected by the third year through purchasing, supply chain and increased efficiencies.
In the previous announcement of the purchase, Tempur stated the companies would operate in largely the same fashion with Sealy continuing its presence in North Carolina with its then CEO, Larry Rogers, remaining in the top position there and reporting to Sarvary in Lexington.