Foam 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.