A Texas federal judge rejected the Federal Trade Commission’s request to block Tempur Sealy International Inc.’s planned $4 billion acquisition of Mattress Firm Group Inc., clearing the way for the deal to move forward. The ruling marks a significant victory for Tempur Sealy, despite continued regulatory opposition.
FTC’s Attempt to Block the Deal Falls Short
U.S. District Judge Charles Eskridge denied the FTC’s motion for a preliminary injunction, which would have paused the transaction while the agency pursues an in-house challenge. The ruling, issued under seal, allows Tempur Sealy to push ahead with its plans, though the FTC secured a seven-day extension on a temporary restraining order to seek an appeal before the Fifth Circuit Court of Appeals.
Tempur Sealy welcomed the ruling, stating, “Despite the FTC’s ongoing efforts to block the transaction, we will make every effort to close it as soon as possible.”
Mattress Firm CEO John Eck also expressed optimism, saying, “We look forward to continuing to build on our legacy to innovate and shape the future of better sleep for millions.”
Regulatory Concerns Over Competition
The FTC first challenged the merger in July, arguing that the deal would give Tempur Sealy—already the world’s largest mattress supplier—undue control over Mattress Firm, the largest mattress retailer in the U.S. Regulators warned that Tempur Sealy could use its dominant position to stifle competition by blocking rival manufacturers from selling through Mattress Firm stores, ultimately driving up prices for consumers.
