Tempur-Pedic buys Sealy
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Monthly Digital Subscription
$1 per week for 24 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Billed as $4.00 plus GST every four weeks. After 24 weeks, price increases to the regular rate of $19.95 plus GST every four weeks. Offer available to new and qualified returning subscribers only. Cancel any time.
Monthly Digital Subscription
$4.99/week*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Billed as $19.95 plus GST every four weeks. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
*Your next subscription payment will increase by $1.00 and you will be charged $16.99 plus GST for four weeks. After four weeks, your payment will increase to $23.99 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
Hey there, time traveller!
This article was published 28/09/2012 (4952 days ago), so information in it may no longer be current.
LEXINGTON, Ky. — Mattress company Tempur-Pedic is buying rival Sealy for about US$228.6 million in cash while also taking on hundreds of millions more in Sealy debt.
Tempur-Pedic International Inc. said Thursday it will pay $2.20 per Sealy share, which is a three per cent premium to the company’s Wednesday closing price of $2.14.
Sealy, based in Trinity, N.C., has about 103.9 million outstanding shares, according to FactSet. Its stock jumped 21 cents, or 9.8 per cent, to $2.35 in pre-market trading.
Tempur-Pedic says it will also assume or pay back all of Sealy Corp.’s outstanding debt. The Lexington, Ky., company plans to finance the acquisition with debt. Its shares gained $1.32, or 4.9 per cent, to $28.10 before the market open.
The companies put the total value of the deal at $1.3 billion, including debt. They say the transaction will create a $2.7-billion global bedding provider.
Sealy operates 25 plants that manufacture bedding in 20 U.S. states, three Canadian provinces, Mexico, Puerto Rico, Brazil, Argentina, France and Italy, the firm’s website says.
“Tempur-Pedic and Sealy together will have products for almost every consumer preference and price point, distribution through all key channels, in-house expertise on most key bedding technologies, and a world-class research and development team,” Tempur-Pedic CEO Mark Sarvary said in a statement.
Tempur-Pedic and Sealy will run independently of each other, with Sealy’s CEO Larry Rogers remaining in that position. Rogers will report to Sarvary.
Tempur-Pedic, founded in 1992, makes and distributes mattresses and pillows in more than 80 countries under its Tempur and Tempur-Pedic brands. Sealy, founded in 1881, makes mattresses under brands including Stearns & Foster, Sealy and Sealy Posturepedic.
While Tempur-Pedic has a particularly strong presence in North America, Europe and Asia, Sealy has a strong presence in North America, Asia and Argentina.
Both companies’ boards have approved the buyout.
— The Associated Press, with files from The Canadian Press