Tempur Sealy International aims to sell 73 Mattress Firm stores and the company’s Sleep Outfitters subsidiary, which includes 103 stores and seven distribution centers, to bedding retailer Mattress Warehouse after it closes on the proposed acquisition of Mattress Firm.
With more than 320 stores, Mattress Warehouse is looking to accelerate its growth and 500 stores by 2027, according to its website. Tempur Sealy said it continues to believe that a successful litigation process can be completed in the coming months, which would allow the transaction to close in late 2024 or early 2025.
Tempur Sealy also said in a separate statement that it has entered into a term loan agreement for $1.6 billion to help fund its cash-and-stock deal to acquire Mattress Firm.
After the divestiture and if the acquisition goes through, Tempur Sealy expects to operate over 2,800 retail locations worldwide and anticipates that half of its North American sales will come from the Mattress Firm operations.
Together, Tempur Sealy and Mattress Firm’s combined global footprint would include 71 manufacturing facilities and four R&D facilities worldwide.
