Lexington, Kentucky — Bedding and foam company Tempur Sealy, saw sales flat between 2016 and 2015 at $ 3 bn but increased EBITDA from $389 m to $511 m in the timeframe and outlined a poison pill take-over defence.
The company saw sales increase by 1.9% in North America to $ 623 m in the fourth quarter of 2016.The company increased its gross margin by just over half of 1% to 39.5% driven by operational improvements, pricing and a favourable product mix which is partly offset by launch costs.
The company's international's net sales fell 6.2% to $246 m in the fourth quarter of 2016, but the said its margin is almost unchanged at approximately 50% of sales.
Looking ahead to 2017, the company expects its adjusted EBITDA to range between $ 400 m and $ 450 m which, the company said includes around $ 15 m of unfavourable commodity price inflation and about $ 12 m of unfavourable foreign currency impact.
In an earlier announcement Tempur Sealy said it was adopting a limited duration stockholder rights plan and declared a dividend distribution of one right for each outstanding share of common stock held on the 20th February 2017.
The rights would only become exercisable if a person or group acquired ownership of 20% or more of Tempur Sealy's common stock and the board did not approve such a transaction. If this were to happen, Tempur Sealy said, the people making the initial purchase would find their rights were null and void and other shareholders would have the opportunity to purchase more. If the rights plan is not renewed, it will expire on 7 February 2018.