Tempur Sealy International is now clear to move forward with its $4 billion acquisition of Mattress Firm Inc. after federal judge Charles Eskridge in Texas rejected a claim by the Federal Trade Commission that the deal would hurt consumers.
Late Friday, the judge ruled in favor of the companies, but said they can’t close the deal until Feb. 7, to allow time for the regulator to consider an appeal. The companies have been in an ongoing battle with the FTC since they sued to block the transaction last July. The FTC said the takeover violates antitrust laws, would hurt other mattress retailers and would reduce options for mattress buyers.
Tempur Sealy executives were found internally discussing taking down competitors like Serta Simmons Bedding and Resident Home by preventing them from being in Mattress Firm stores.
Eskridge didn’t give a reason for his ruling, but the redacted version of the full decision will be made available on Tuesday, according to the public filing announcing his order.
Tempur Sealy said in a statement that it was “pleased” with the decision. “Despite the FTC’s ongoing efforts to block the transaction, we will make every effort to close it as soon as possible,” it continues.
The FTC can appeal Friday’s decision to the U.S. 5th Circuit Court of Appeals in New Orleans.
