Extra Extra Tempur-Pedic agrees to buy Sealy Corportation
A big WOW has been reported in Furniture Today, MSN.com, Wall Street Journal, and CNN September 27, 2012. Tempur- Pedic will purchase its long time competitor and one time industry leader Sealy the maker of Sealy Posturepedic mattresses, Sterns and Foster Mattresses, and bedding and pillows. The purchase will be made for$242 million. They will also assume the company’s debt. This creates a $1.3 billion deal with an estimated $2.7 billion global bedding supplier. So the headline today is Extra Extra Tempur Pedic agrees to buy Sealy Corportation.
Shocking news in the bedding industry that Tempurpedic is to buy out Sealy
The block buster buyout brings together 2 globally recognized mattress giants, major visco-elastic foam mattress manufacturer Tempur- Pedic and long time undisputed heavy weight mattress maker Sealy Corporation. Sealy was up until 1 year ago “the” leading U.S. producer of innerspring mattresses . Combined the 2 bedding leaders will have their fingers in virtually every different kind of mattress offering. They will serve up a wide variety of products and price points to consumers. Their global foot-print will extend into over 80 countries giving them a huge advantage over the competition in distribution, expertise, and nearly all bedding technologies including research and development.
Tempur Pedic continues to expand with record profit margin
A new line of mattress branded Simplicity is due to be released early in 2013. The company is hoping to add to this growth by increasing a target audience they had not previously focused on before. This new line will target the $1000-$2000 mattress range with an innovative and different material from its original design. The new entry level range should fill a void where Tempur Pedic had not previously not been strong. It is said that Simplicity is not be like other memory foams, and hopes the growth will stem from 6 million current users who already sleep on and like the Tempur Pedic brand. These current owners are said to be passionate about their Tempur pedic beds and hope that recommendations and lower price points will stem the growth.
Tempur-Pedic says this acquisition, in its first 1 rst full year is expecting annual cost synergies of the joined companies to exceed $40 million by the 3rd year.
