Tempur Sealy to divest more than 100 stores in bid to close $4 bln Mattress Firm deal
23/09/2024 13:08
Sept 23 (Reuters) - Tempur Sealy International TPX.N
said on Monday it plans to sell more than 100 stores in a bid to
get regulatory approval for its $4 billion deal with Mattress
Firm.
Tempur Sealy's merger with Mattress Firm, which would create
a combined empire of about 3,000 stores globally, raised
concerns about price hikes and job losses and led the U.S.
Federal Trade Commission to sue in July to block the merger.
The mattress manufacturer, which has been acquiring
retailers to expand its presence in the segment, now plans to
sell 73 Mattress Firm locations to independently owned bedding
specialty retailer Mattress Warehouse.
The company will also sell 103 specialty mattress retail
locations under its Sleep Outfitters brand, and seven
distribution centers.
The divestiture is subject to the closing of its deal with
Mattress Firm, Tempur Sealy said.
The Lexington, Kentucky-based company said it would continue
to supply its products to the divested Mattress Firm and Sleep
Outfitters stores.
The hearing of its litigation process with the U.S FTC is
scheduled to begin on Nov. 12 and is expected to last for two
weeks.
In a separate statement, Tempur Sealy said it has entered
into a term loan agreement for $1.6 billion to help fund its
cash-and-stock deal to add Mattress Firm's more than 2,300
brick-and-mortar store locations to its lineup.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Janane Venkatraman)
((AnujaBharat.Mistry@thomsonreuters.com;))