FTC unanimously moves to block $4 billion merger of mattress giants

The Federal Trade Commission unanimously voted to block mattress maker Tempur Sealy’s purchase of Mattress Firm on Tuesday.

The Federal Trade Commission unanimously voted to block mattress maker Tempur Sealy’s purchase of Mattress Firm on Tuesday. In May, Tempur Sealy – the world’s largest mattress supplier and manufacturer – agreed to buy the United States’ largest bedding retailer in a roughly $4 billion deal. The FTC authorized a lawsuit in federal court to block the acquisition. The Commission said that the proposed deal would suppress competition and raise prices for mattress buyers, and give the companies “enormous power” in the mattress supply chain. The FTC also said that documents showed that competing mattress suppliers would lose access to its most important retail channel. These suppliers employ thousands of American workers, it said. “Through emails, presentations, and other deal documents, Tempur Sealy has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” said Henry Liu, Director of the FTC’s Bureau of Competition in a press release. “This deal isn’t about creating efficiencies; it’s about crippling the competition, which would raise prices on an essential good and could lead to layoffs for good paying American manufacturing jobs in nearly a dozen states.” The deal would have given the combined company 3,000 stores and 71 manufacturing facilities and was expected to close in the second half of 2024. Tempur Sealy’s portfolio includes Tempur-Pedic, Tempur, Sealy and Stearns and Foster.