LEXINGTON, KY. AND HOUSTON — Tempur Sealy International Inc. has completed its previously announced $5 billion acquisition of Mattress Firm Group Inc., the largest mattress specialty retailer in the United States. The Lexington-based mattress manufacturer purchased the Houston-based retailer using approximately $2.7 billion in cash considerations and about $1.3 billion in stock.
Tempur Sealy will change its name to Somnigroup International Inc., effective Feb. 18, and trade on the New York Stock Exchange under the ticker symbol “SGI.” Mattress Firm, Dreams and Tempur Sealy will operate as decentralized business units under Somnigroup International, with Mattress Firm and Dreams continuing to operate as multi-branded retailers and Tempur Sealy, primarily a manufacturer, continuing to serve third-party retailers as well as Mattress Firm, Dreams and its own direct-to-consumer channel.
Additionally, Tempur Sealy expects to complete the previously announced sale 73 Mattress Firm retail locations and the company’s Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers, to MW SO Holdings Co. LLC (Mattress Warehouse) in the second quarter.