Tempur Sealy to acquire retailer Mattress Firm as Q1 sales fall

Kentucky, US – Mattress manufacturer Tempur Sealy is expanding its retail footprint in the US with the acquisition of Mattress Firm. It is paying about $4bn in cash and stock for the retailer, the largest specialist mattress retailer in the US, which has more than 2300 stores across the country, as well as an e-commerce platform. The transaction is expected to close in the second half of 2024.

“This acquisition aligns with our strategy of acquiring companies that extend our competitive advantages, enable us to move closer to consumers, and facilitate continued innovation,” said Scott Thompson, the company’s chairman and CEO. “This combination will complement Tempur Sealy’s extensive product development and manufacturing capabilities with vertically integrated retail. The two companies have grown over the last 35 years with a mutual focus on providing customers the best sleep products in the world. We are thrilled to formally bring these teams together.”

The company also announced its financial results for the first quarter of 2023, with total net sales falling by 2.5% to $1.21bn, down from $1.24bn in the same quarter in 2022. In North America, net sales were down 1.3% to $920m, from $931m the year before. In the international business, net sales fell from $308m to $288m, a decline of 6.4%.

“Our first quarter performance reflects the strength of our industry-leading business model, as we continued to outperform the broader industry against a challenging operating backdrop,” Thompson said. “Though the US industry conditions were slightly less favourable than anticipated as a result of heightened macroeconomic pressures, we performed largely in line with our first quarter expectations.”

He added that the company expects that in the second quarter, consolidated sales will return to year-on-year growth, in the light of its newly launched products and encouraging order trends.