
Tempur Sealy International, Inc. announced it has officially completed its previously announced acquisition of Mattress Firm Group Inc., the nation’s largest mattress specialty retailer.
The deal, valued at approximately $5 billion, follows a recent ruling from the United States District Court for the Southern District of Texas denying the Federal Trade Commission’s (FTC) motion for a preliminary injunction to block the transaction. The FTC has indicated it will not seek emergency relief from the Fifth Circuit to prevent the acquisition’s closure.
“We are excited to move forward with our combination with Mattress Firm, which creates the leading vertically integrated global bedding company and which we strongly believe will bring significant benefits to all of our stakeholders,” said Tempur Sealy Chairman and CEO Scott Thompson.
In a separate announcement, the company announced it will rebrand as Somnigroup International Inc. ("Somnigroup"), effective February 18. Under this new structure, Mattress Firm, Dreams, and Tempur Sealy will operate as decentralized business units. Mattress Firm and Dreams will continue as multi-branded retailers, while Tempur Sealy, primarily a manufacturer, will maintain its third-party retailer relationships alongside its direct-to-consumer channels.
The acquisition was financed with approximately $2.7 billion in cash (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 portion was funded through a combination of on-hand reserves and existing borrowings.
Additionally, the company expects to complete the divestiture of 73 Mattress Firm retail locations and its Sleep Outfitters subsidiary — which includes 103 specialty mattress stores and seven distribution centers — to MW SO Holdings Company, LLC ("Mattress Warehouse") in the second quarter of 2025.
“We have collaborated with Mattress Firm for over 35 years, and we are thrilled to welcome them into the Tempur Sealy, soon Somnigroup, organization,” Thompson said. “The addition of Mattress Firm will unlock incremental benefits for all stakeholders by accelerating our U.S. omni-channel strategy. This transaction creates a leading global bedding company with extensive manufacturing capabilities and a broader U.S. retail footprint.”
In connection with the acquisition, Tempur Sealy is expanding its Board of Directors, appointing Peter Sachse as a new board member, effective immediately. Sachse brings more than 30 years of executive leadership experience in retail, including serving as CEO of Tailored Brands, Inc. and holding various leadership roles over a 34-year career at Macy’s, Inc.
With the acquisition now complete and a rebrand on the horizon, Somnigroup positions itself as a dominant force in the global bedding industry.