Urethane Blog
Tempur Info
September 15, 2024
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.
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