Mattress maker Tempur Sealy has agreed to buy the nation’s largest bedding retailer Mattress Firm in a roughly $4 billion deal, the companies announced Tuesday. The deal gives the combined company 3,000 stores and 71 manufacturing facilities and is expected to close in the second half of 2024. Mattress and furniture sales have slowed following a pandemic-induced high when consumers splurged heavily on home furnishings.
The retailer struggled with over-expansion and online competitors, including Casper and Amazon. Last year, Mattress Firm’s parent company Steinhoff International said it was exploring “strategic options.” Earlier this year, plans for a public offering for Mattress Firm were scrapped. Steinhoff has been looking to sell of the retailer in order to pay off debt, according to Neil Saunders, an analyst at GlobalData Retail.