FTC Moves to Block Tempur Sealy and Mattress Firm Merger

The Federal Trade Commission (FTC) announced on Tuesday its intention to file a lawsuit aimed at blocking the proposed $4 billion merger between mattress manufacturer Tempur Sealy and retailer Mattress Firm. Initially revealed in May 2023, the deal would allow Tempur Sealy to acquire Mattress Firm, which operates over 2,300 stores, potentially expanding its global footprint to around 3,000 locations. The merger was anticipated to finalize in the latter half of 2024. The FTC's unanimous 5-0 vote to block the merger stemmed from concerns regarding its impact on market competition, particularly against rivals Serta Simmons Bedding and Purple Innovation. Henry Liu, Director of the FTC Bureau of Competition, stated that the acquisition appears aimed at undermining competitors rather than enhancing market efficiency. He warned that the merger could lead to increased prices for consumers and jeopardize American manufacturing jobs across multiple states. In response to the FTC's decision, Mattress Firm expressed disappointment, asserting that the merger would benefit consumers, employees, and the broader bedding industry. The retailer emphasized its commitment to offering a diverse range of products, including both Tempur Sealy and other brands, and noted ongoing collaboration with suppliers regarding post-merger agreements. Tempur Sealy also expressed its discontent with the FTC's litigation, asserting that it has been cooperative in seeking regulatory approval. The company maintained that the bedding market remains highly competitive, and it believes the merger would ultimately provide significant advantages for consumers and stakeholders alike.