Washington DC -- The US Federal Trade Commission (FTC) on 8 March approved the proposed purchase of Sealy Corp by Tempur-Pedic International Inc. in a $1.3 billion acquisition.
Tempur-Pedic and Sealy said in a joint statement the acquisition is set to close on 18 March, subject to the usual closing conditions.
"The combination of Tempur-Pedic and Sealy unites two highly complementary companies with iconic brands to create the first full-spectrum, global bedding company that addresses all market segments and consumer preferences," said Tempur-Pedic CEO Mark Sarvary.
Under the deal's terms, Tempur-Pedic will buy all of Sealy's outstanding common stock for $2.20 per share and will assume about $750 million of Sealy's debt.
In a pair of letters to the companies on Thursday, the FTC said that, following an investigation by its bureau of competition into whether the deal would violate the Clayton Act or the FTC Act, the commission has determined that it need not take any further action at this time. The FTC may take action in the future though if the purchase causes competition problems.
After the deal is consummated, the companies will continue to operate independently, but together will be a $2.7 billion enterprise with a broadened global footprint reaching more than 80 countries.