Mergers & Acquisitions
September 15, 2024
Tempur Info
Tempur Sealy gains amid report of divestiture buyer in Mattress Firm deal
Sep. 13, 2024 3:26 PM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
Tempur Sealy (NYSE:TPX) rose 4% amid a report that a potential buyer for the divestiture package for its deal with Mattress Firm has been identified before a November trial from the Federal Trade Commission challenging the combination.
The buyer has met with the FTC, according to a CTFN report on Friday, which said it didn’t know the identity of the bidder.
It wasn’t known if the proposed remedy package has been or will be altered, according to the report.
The FTC sued in early July to block mattress maker Tempur Sealy’s (TPX) planned $4 billion purchase of retailer Mattress Firm. The regulator issued an administrative complaint and authorized a lawsuit in federal court to prevent the deal, alleging that Tempur Sealy — the world’s largest mattress supplier and manufacturer – will have the ability and incentive to “suppress competition” and raise prices for mattresses. The Commission voted 5-0 to authorize the lawsuit to challenge the transaction.
Piper Sandler analyst Peter Keith said in a July note that TPX will have no issue divesting 200 stores that may raise competitive concerns in specific markets.
Tempur Sealy (TPX) agreed to buy Mattress Firm in a $4 billion deal in May 2023.
September 11, 2024
Latest Reports on Adnoc and Covestro
Adnoc to acquire chemical company Covestro for $16bn
By Reuters & Staff Writer
September 11, 2024
Abu Dhabi National Oil Company (Adnoc) is expected to make a formal offer to buy German chemical company Covestro AG.
The Financial Times reported that the 14.4 billion euros ($15.90 billion) offer will set up the state-owned energy producer to expand its overseas holdings.
The companies have been in talks since Adnoc made an initial informal offer in September 2023.
In June Covestro confirmed it had started “concrete negotiations” over a $12.5 billion offer, with €62 ($67) a share as a starting point for the negotiations.
Covestro, which makes plastics and chemicals for construction and engineering, said at the time it was opening its books to Adnoc because an agreement on core aspects including Covestro’s growth strategy may be reached.
- Adnoc’s acquisition strategy could lead to something major
- Adnoc makes final bid for German chemicals maker
- Covestro begins formal talks with Adnoc on its $12bn bid
A spokesperson for Covestro said the company had read the FT report with interest and did not comment further. Adnoc declined to comment.
Covestro generated sales of €14.4 billion in 2023. At the end of that year the company had 48 production sites worldwide and employed approximately 17,500 people.
https://www.agbi.com/energy/2024/09/adnoc-to-acquire-chemical-company-covestro-for-16bn/
August 28, 2024
Adnoc and Covestro Update
Adnoc Finishes Due Diligence on €12 Billion Covestro Deal
ByEyk Henning and Dinesh NairAugust 28, 2024 at 6:54AM EDT
(Bloomberg) — Abu Dhabi National Oil Co. has largely completed due diligence on its planned bid for German chemical company Covestro AG, paving the way for the state-owned energy firm’s biggest-ever deal, people familiar with the matter said.
Adnoc could move forward with an €11.7 billion ($13 billion) offer for Covestro as soon as September, the people said. It has finished site visits to major Covestro plants as part of its in-depth confirmatory due diligence and hasn’t discovered any red flags, according to the people.
The Middle Eastern company still needs final signoff from senior officials for the planned bid of €62 per share, which may take several more weeks, the people said, asking not to be identified because the information is private. Shares of Covestro jumped as much as 5.7% in Frankfurt trading Wednesday to touch €56.90, the highest intraday level since January 2022.
Representatives for Adnoc and Covestro declined to comment.
After more than a year of negotiations, Covestro in June agreed to exchange information with Adnoc to help it firm up the prospective bid. Adnoc said at the time that a potential bid of €62 per share was its final offer, indicating it wouldn’t be raising any further after already bumping several times from its first proposal of €55 per share.
Backed by tens of billions of dollars of oil money, Adnoc has been scouring the world for deals. Chemicals are a big part of that push, as the company sees demand for products used to make goods such as plastics continuing to rise over the coming decades, while the energy transition is likely to slow oil demand.
July 31, 2024
Domfoam Acquires Foamco
2 foam companies join to expand Canadian footprint
Sheila Long O’Mara //Executive Editor, Furniture Today//July 15, 2024
MONTREAL – Foam maker Domfoam has acquired fellow Canadian foam and mattress maker Foamco Inds. in a move designed to expand its growing market share in the country and enhance its quick delivery service.
Domfoam said the acquisition allows it to expand into the Ontario market and “solidify its presence in Quebec.” The company said it will be able to offer next-day delivery services throughout the greater Toronto area and Ontario.
Financial details of the deal were not disclosed.
“This strategic move allows us to extend our reach and provide superior service to a broader market, meeting the growing demand for our products,” said Jonathan Pomerantz, CEO of Domfoam.
“The acquisition of Foamco is great for Domfoam,” said Karim Khoury, vice president of operations. “It solidifies the fact that we are ready to compete with our biggest competitors and it is very exciting for the Domfoam family to grow.”
Founded in 1963, Domfoam operates three manufacturing facilities in Quebec. Foamco was founded in 1987 as a foam converter and shifted to focus on the bedding industry in the late 1990s. As part of the acquisition, Domfoam adds two factories – one in Toronto and one in Quebec – to its manufacturing network that totals more than 550,000 square feet.
“We are committed to maintaining our high standards of quality and service as we grow, ensuring that our customers in Ontario receive the same level of excellence that has made us a trusted name in Quebec,” Pomerantz said. “This expansion not only enhances our production capacity but also ensures healthy competition for our customers by providing a third manufacturing option. Our increased capabilities will allow us to meet the diverse needs of our consumers more effectively, delivering high-quality foam products with greater efficiency.”
July 2, 2024
FTC To Sue To Block Tempur Sealy Acquisition
FTC preparing lawsuit to block Tempur Sealy’s $4B acquisition of Mattress Firm
Jul. 02, 2024 7:51 AM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
The Federal Trade Commission is poised to sue to block mattress maker Tempur Sealy’s (NYSE:TPX) $4 billion planned purchase of retailer Mattress Firm. Tempur Sealy ticked lower by 0.5% in premarket trading.
The regulator is concerned that combining the largest manufacturer and retailer would lead to higher prices and that Tempur Sealy (TPX) may discriminate against rival suppliers, according to a Politico Pro report late Monday, which cited three people familiar with the matter.
A lawsuit could be filed as soon as Tuesday, according to the report.
The Politico Pro piece comes after CTFN reported last Tuesday that the companies met with the FTC last week in a last effort to try to convince the regulator to not block the combination.
CTFN also reported on Thursday that the Tempur Sealy/Mattress Firm deal was expected to be the subject of closed door meeting at the FTC on Monday. Tempur Sealy (TPX), which agreed to buy Mattress Firm in a $4 billion deal in May 2023, had agreed to sell off some of its retail stores to try to appease the FTC, according to the earlier CTFN item.
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