The proposed acquisition of Mattress Firm by US maker Tempur Sealy is intended to “eliminate future competition”, a new document unsealed by a Texas judge revealed.
According to documents recently made public by the judge, Tempur Sealy chief executive officer Scott Thompson had noted in a May 2022 presentation that acquiring Mattress Firm would “eliminate future competition” and “block new competition.”
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The document is one of submissions made by the US Federal Trade Commission (FTC), which unanimously voted to block the $4bn deal announced in May 2023.
The unsealed documents also reveal that Tempur Sealy executives believed the acquisition would prevent competitors like Serta Simmons Bedding and Resident Home, which offers the Nectar brand, from gaining distribution in Mattress Firm stores.
Another presentation to Tempur Sealy’s board highlighted the strategic advantage of the acquisition, suggesting it would “further build a competitive moat” and grant “maximum control over a critical retail channel partner.”
Despite the FTC’s lawsuit, Tempur Sealy has expressed its intention to contest the allegations, maintaining that the transaction complies with legal standards.
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By GlobalDataA hearing on the FTC’s injunction request to halt the acquisition is yet to be scheduled by the Texas court, although both parties have proposed a hearing in November.
Mattress Firm, currently owned by Steinhoff International Holdings and operating more than 2,300 stores in 49 US states, stands as Tempur Sealy’s largest rival.
