A veritable blizzard of conversations has been sweeping through Mattressville in the past two weeks. Somnigroup International’s proposed acquisition of Leggett & Platt took bedding leaders by surprise and sent tongues wagging across the industry.
Amid all of the private talk, one thing stood out to me: The lack of public comments. I had no difficulty getting candid opinions about the proposed mega-deal, as long as they were off the record.
For example, one company president told me privately that the proposed acquisition “makes sense” for SGI but would be of “questionable” value for the industry. Another industry veteran said, not for attribution to him, that the deal would deliver “a crushing blow” to a significant SGI competitor but claimed that it would not be “the end of the world” for Tier 2 producers — if their supply chains were not disrupted.
But when I sought on-the-record comments, I was greeted with a surprising silence. Several well-known bedding leaders had nothing to say. That is a sad and alarming state of affairs.
I understand the broad reach that Leggett & Platt enjoys on the supplier side of the business, and I understand that bedding producers who buy from L&P might be hesitant to say anything that could potentially impact that critical supply chain.
I also understand the sense of resignation that some say has settled over the industry in the wake of SGI’s successful acquisition of Mattress Firm, despite strong industry opposition to that move. As one exec said to me, privately: What’s the point in getting all worked up over the SGI-L&P deal, given the likelihood that SGI will once again win the day?
But decades of experience in journalism have revealed an important truth to me: Shying away from a controversial topic is not in the best interests of the industry. Silence does nothing to illuminate an issue.
You would think that bedding leaders would have some thoughts on how major consolidation would impact the industry. And I did get some powerful comments on this issue from a few bedding leaders. GoodBed CEO Mike Magnuson weighed in with a withering assessment, one that we brought you last week, and Shifman’s Mark Quinn, Therapedic’s Gerry Borreggine, Diamond’s Shaun Pennington and Symphony Sleep’s John Schulte all voiced concerns about consolidation like the one SGI’s proposed acquisition of L&P would bring to the industry.
Also, I recently heard from Serta Simmons Bedding. Jim Loree, SSB’s CEO, said:
“While Leggett & Platt is an important supplier to the industry, including Serta Simmons Bedding, we have worked intentionally and diligently in recent years to diversify and de-risk our supply chain. Therefore, this proposed acquisition does not represent a material risk or concern to us. We have a strategic roadmap in place to restore SSB to its preeminent place in the sleep industry. We are laser-focused on factors we can control, including financial strength, partnering with our customers and driving growth through exceptional innovation, outstanding products and world-class customer service.”
I thank those bedding executives for sharing their thoughts with us and for recognizing their responsibility to speak out publicly. To those executives who politely declined my requests for comment, I would ask you to think about your obligation as an industry leader. If you are concerned about the implications of an SGI-L&P deal, which I believe many of you are, you must speak up. Your voices matter.
On another level, the silence on this issue could highlight an even bigger problem. Perhaps the bedding industry lacks the courage to confront its own future. I hope that is not the case. I know that bedding leaders care deeply about the industry where they have made their careers. Now, with the prospect of major changes coming to the industry, it is critical that our leaders speak up. Let’s have a healthy, robust discussion about our future. If we don’t, we might not like the future that will await us.
