Tempur Sealy set to acquire Mattress Firm

LEXINGTON - Tempur Sealy International, Inc. (NYSE:TPX), a global leader in the bedding industry, is poised to finalize its acquisition of Mattress Firm Group Inc. on Wednesday, following a U.S. District Court ruling. The Federal Trade Commission’s (FTC) request for a preliminary injunction to stop the merger was denied, clearing the way for the transaction to proceed as planned. The company’s stock has shown remarkable momentum, with a 37% gain over the past six months and currently trading near its 52-week high of $68.53. InvestingPro analysis reveals 13 additional key insights about TPX’s market performance.

The acquisition, which Tempur Sealy believes will create the leading vertically integrated global bedding company, is anticipated to deliver significant benefits to stakeholders, according to Tempur Sealy Chairman and CEO Scott Thompson.

The company will discuss the details of the transaction during a conference call on Thursday at 8:00 a.m. Eastern Time. Additionally, a separate call is scheduled for February 20, 2025, to review the fourth quarter and full year financial results for 2024.

Tempur Sealy’s forward-looking statements indicate expectations for the Mattress Firm acquisition but also acknowledge that actual outcomes may vary due to a variety of factors, including the ability to close the acquisition as planned and integrate operations successfully.

Tempur Sealy, known for its Tempur-Pedic®, Sealy®, and Stearns & Foster® brands, operates over 750 company-owned stores and sells products through third-party retailers and e-commerce channels. The company has also committed to achieving carbon neutrality for its global wholly owned operations by 2040.

The information in this article is based on a press release statement from Tempur Sealy International, Inc.

In other recent news, Tempur Sealy International has been the subject of several analyst reports following its acquisition of Mattress Firm. UBS, Truist Securities, KeyBanc Capital Markets, Piper Sandler, and BofA Securities all raised their price targets for the company, maintaining positive ratings. The acquisition, which followed a legal victory allowing the merger to proceed despite objections from the Federal Trade Commission, is expected to significantly boost Tempur Sealy’s earnings in the coming years.

UBS analyst Atul (NSE:ATLP) Maheswar anticipates that Tempur Sealy’s strategic moves will enhance the company’s earnings outlook, while Truist Securities’ Keith Hughes suggests the merger could increase earnings before interest, taxes, depreciation, and amortization (EBITDA) by 5%-10%. KeyBanc’s Bradley Thomas expressed confidence in the potential for Tempur Sealy to exceed its synergy targets, with a possible increase of $300 million in EBITDA synergies over the next five to ten years.

Piper Sandler projected that the acquisition could significantly increase Tempur Sealy’s earnings per share (EPS), estimating an accretion of $1.40-$1.90 over three years. BofA Securities analyst Curtis Nagle also increased the price target on Tempur Sealy shares, reaffirming a Buy rating for the company. These recent developments underline Tempur Sealy’s strong market position and its potential for future growth.

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