By Dean Seal

Tempur Sealy International is rebranding to Somnigroup International after closing its $5 billion acquisition of Mattress Firm Group.

The world's largest mattress supplier and manufacturer said Wednesday that its Mattress Firm, Dreams and Tempur Sealy businesses will operate as decentralized units under the Somnigroup umbrella after the name change, which takes effect on Feb. 18.

"The name Somnigroup is derived from the Latin somn meaning sleep, omni meaning all, and 'group' to represent our omni-channel strategy," Chief Executive Scott Thompson said.

Tempur Sealy, which is primarily a mattress maker, will continue to serve third-party retailers as well as Mattress Firm, Dreams and its own direct-to-consumer channel, the company said.

Once the rebrand happens, Somnigroup's stock will start trading under the ticker symbol SGI instead of TPX on the New York Stock Exchange.

The Lexington, Ky.-based Tempur Sealy agreed to buy Mattress Firm in May 2023 for $2.7 billion in cash and about $1.3 billion in stock, after roughly two years of talks between the two sides. The deal, originally set to close in the second half of this year, was inked with the goal of boosting Tempur Sealy's sales amid tepid home-improvement spending and inflated costs in the bedding industry.

The total purchase price was ultimately about $5 billion, the company said Wednesday. It was funded by about $2.7 billion in cash, taken from cash on hand and debt, and 34.2 million shares of common stock, which opened the market at $65.46.

In connection with the acquisition, the soon-to-be Somnigroup is expanding its board with the addition of Peter Sachse, chief executive of Men's Wearhouse and Jos. A. Bank owner Tailored Brands.

Tempur Sealy said Tuesday that a federal judge had denied the Federal Trade Commission's motion for an order blocking the company from closing the acquisition, and that the agency indicated it wouldn't appeal or further prevent the closing.

The FTC had voted in July to block the acquisition, saying it could suppress competition and raise mattress prices for millions of customers.

Tempur Sealy responded in September that it would sell dozens of Mattress Firm locations and the Sleep Outfitters retail chain to help appease the regulator's concerns. The divestiture plan would leave Temper Sealy with over 2,800 retail locations worldwide once the transaction closed.

The divestitures are expected to be completed in the second quarter of this year.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 05, 2025 10:43 ET (15:43 GMT)

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