Henry Liu, Director of the FTC’s Bureau of Competition, stated, “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. 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 FTC Commission voted unanimously (5-0) to challenge the transaction. Reports surfaced on Monday that the FTC was preparing a lawsuit, following a meeting last week between the companies and the regulator in a last-ditch effort to save the merger.
Tempur Sealy Responds
Tempur Sealy responded to the FTC’s suit, expressing disagreement with the FTC’s stance.
The company claimed that “We are and have been open to appropriate commitments to address FTC concerns. Consistent with our operation of the multiple bedding retailers we have acquired in Europe, Mattress Firm will remain a multi-branded retailer, and we have already engaged with numerous Mattress Firm suppliers on post-merger supply agreements and have executed several agreements. In keeping with our multi-brand strategy, we have also offered a guaranteed slot commitment for third-party manufacturers at Mattress Firm stores. Lastly, we have been open to a divestiture of stores and supporting infrastructure.”
