The Federal Trade Commission (FTC) has blocked the $4 billion acquisition of Mattress Firm by Tempur Sealy International, citing concerns over competition and potential price hikes. Tempur Sealy, a leading global supplier of mattresses with renowned brands like Tempur-Pedic and Stearns & Foster, aimed to buy the nation’s largest bedding retailer, Mattress Firm, which would have given them significant influence in the mattress supply chain. The FTC unanimously voted against the merger, suggesting that the deal would stifle competition, harm consumers, and result in job losses for other suppliers. Director of the FTC’s Bureau of Competition, Henry Liu, argued that the merger was a strategic attempt by Tempur Sealy to dominate the market. The proposed deal was initially agreed upon in May 2023 and was anticipated to close by late 2024 or early 2025. Tempur Sealy and Mattress Firm both defended the acquisition, arguing that it would benefit consumers and employees alike. However, the FTC has raised alarms that such a merger would particularly impact ‘working class, older adults’ who rely on financing options, and could force competitors like Serta Simmons and Purple Innovation out of business.

Mattress and Bedding Industry, Regulatory & Legal,United States