Lexington, Kentucky -- Tempur Sealy International announced it has signed an agreement to buy the Sealy brand rights in Japan and other assets from its former licensee. Tempur Sealy said it expects to close the deal in its fiscal third quarter of 2014. Financial terms were not disclosed.
Tempur Sealy buys name rights in Japan
As part of the transaction, sales and marketing, will be integrated into the Tempur Sealy Japanese subsidiary. The former licensee will become a contract manufacturer for some Sealy-branded products in Japan.
Tempur Sealy International, Inc. CEO Mark Sarvary said, “Japan has been an important market for our Company for a long time and we are excited at the prospects of further increasing our penetration and market share with a strengthened brand and product offering."
Chief Financial Officer Dale Williams said he expected Japan to become the company's largest market outside the US in terms of sales. The transaction will break even in 2014 and should add to earnings in the future. No details of the former licensee were available.