Sealy Gets in Bed with Tempur-Pedic for $1.3 Billion

Andrew Klips |

Sealy Gets in Bed with Tempur-Pedic for $1.3 BillionFoam mattress maker Tempur-Pedic (TPX) said this morning that it will pay $2.20 per share to acquire competitor Sealy Corp. (ZZ) in a deal valued at $1.3 billion, including debt. Sealy closed trading at $2.14 on Wednesday, so the deal only represents at 2.8 percent premium, but it is a 23 percent premium compared to Sealy’s 30-day average closing price. The combined global bedding provider will be valued at $2.7 billion, according to TPX management.

Public since early 2006, shares of Sealy have traded as high at $17.59 in 2007 and as low as 43 cents in 2009. Sealy, whose brands include Posturepedic®, and Stearns & Foster®, has roots dating back to 1881, 111 years before Tempur-Pedic became a company in 1992.

"This is a transformational deal that brings together two great companies, each with globally recognized brands,” said Tempur-Pedic Chief Executive Officer Mark Sarvary. Collectively, the company will have a global footprint in more than 80 countries.

Tempur-Pedic and Sealy will continue to operate independently with Sealy’s current CEO, Larry Rogers, now reporting to Sarvary.

The transaction has been approved by the Boards of Directors of both companies. Stockholders holding approximately 51 percent of Sealy's outstanding common stock have executed a written consent approving the transaction; meaning that no additional shareholder approvals are required to complete the transaction. Closing is expected during the first half of 2013.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
S Sprint Corporation 8.90 0.09 0.96 4,252,331
TPX Tempur Sealy International Inc. 46.76 0.57 1.23 575,363


Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…


The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…