Bullish indicating open at $55-$60, IPO prices at $37
LEXINGTON, Ky. - Somnigroup International Inc. (NYSE: SGI), previously known as Tempur Sealy (NYSE:SGI) International, announced today the official change of its corporate name. The company's common stock will continue to be listed on the New York Stock Exchange under the new ticker symbol "SGI." The stock has shown strong momentum, with InvestingPro data showing a nearly 30% return over the past year and trading near its 52-week high of $1.66.
Chairman and CEO Scott Thompson commented on the rebranding, stating that Somnigroup is the world's largest bedding company, encompassing a range of well-known brands and products. The new name, derived from Latin words for sleep and all-encompassing, reflects the company's global reach and omni-channel strategy in providing sleep solutions. According to InvestingPro data, the company generates annual revenue of $3.9 billion with a healthy gross profit margin of 39.7%.
The company's portfolio includes Tempur Sealy, Dreams, and Mattress Firm, along with flagship brands Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy's. The diversified sales channels across its global platform aim to meet consumers' shopping preferences.
Thompson emphasized the company's commitment to delivering innovative sleep solutions that cater to the varied needs of customers worldwide and to generating long-term growth for shareholders. He expressed confidence in the company's future, looking forward to continuing to enhance people's lives through better sleep.
The press release also contained forward-looking statements regarding expectations for the integration and performance of Mattress Firm within Somnigroup's operations. These statements are based on current beliefs and assumptions, with the acknowledgment that actual results could differ materially due to various factors.
Somnigroup's approach to business includes a focus on environmental protection and community engagement, aligning with its core value of Doing the Right Thing. The company operates in more than 100 countries and seeks to provide value for shareholders through strategic capital allocation. For deeper insights into SGI's financial health, valuation, and growth prospects, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro's detailed research reports.
This news article is based on a press release statement from Somnigroup International. For more details about the company and its brands, please visit the official website.
In other recent news, Tempur Sealy International has made several noteworthy moves. After acquiring Mattress Firm Group Inc., the company plans to rebrand as Somnigroup International Inc. Scott Thompson, Tempur Sealy's Chairman and CEO, is set to serve as Mattress Firm's interim CEO as the company seeks a permanent replacement. The acquisition, valued around $5 billion, led to pro forma sales of approximately $8 billion for the twelve months ending December 31, 2024.
S&P Global confirmed Tempur Sealy's 'BB' ratings post-acquisition, with the company's pro forma leverage falling within the 4x downgrade limit. The company's senior notes were lowered to 'BB-' due to increased senior secured debt. Tempur Sealy's sales are projected to increase by at least 3% in fiscal 2025, and the company is expected to use its strong free operating cash flow for debt repayment.
UBS analyst Atul (NSE:ATLP) Maheswar raised the price target for Tempur Sealy shares to $78, maintaining a Buy rating. Maheswar anticipates strategic moves will enhance Tempur Sealy's earnings outlook. The company's focus is likely to be on refining retail operations at Mattress Firm, similar to their approach after acquiring Dreams, another retailer owned by Tempur Sealy.
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