Tempur Sealy International, Inc. has officially completed its acquisition of Mattress Firm Group Inc., the largest specialty mattress retailer in the U.S., in a transaction valued at approximately $5 billion. Alongside this milestone, the company announced its rebranding to Somnigroup International Inc. ("Somnigroup"), effective February 18, 2025.
The acquisition marks a significant expansion for the company, now comprising three major business units—Tempur Sealy, Mattress Firm, and Dreams. While Tempur Sealy will continue to focus on manufacturing, Mattress Firm and Dreams will operate as multi-branded retailers, further strengthening the company's omni-channel strategy.
Chairman and CEO Scott Thompson emphasized the significance of the acquisition, stating, “The addition of Mattress Firm unlocks incremental benefits for all stakeholders by accelerating our U.S. omni-channel strategy. Together, the companies will enhance product innovation, improve customer experience, and ensure high-quality products reach the market.”
With the rebrand, the company’s stock will transition to the NYSE ticker symbol "SGI" to reflect its global positioning. The new name, Somnigroup International, derives from the Latin word somn (sleep), omni (all), and group, signifying its broad reach in the sleep industry.
On a pro forma basis, Somnigroup reported $8 billion in sales over the twelve months ending December 31, 2024. North America accounted for 85% of revenue, while international sales contributed 15%. Additionally, 65% of sales came from direct-to-consumer channels, with the remaining 35% from third-party retailers.
The acquisition was financed through $2.7 billion in cash consideration and 34.2 million shares of common stock. The cash portion was funded using existing borrowings and cash reserves.
As part of regulatory commitments, 73 Mattress Firm locations and 103 Sleep Outfitters retail stores, along with seven distribution centers, will be divested to MW SO Holdings Company, LLC (Mattress Warehouse) in Q2 2025.
In line with its growth strategy, the company has appointed Peter Sachse to its Board of Directors. Sachse brings over 30 years of experience in retail, including leadership roles at Macy’s and Tailored Brands.
Source: Tempur Sealy
Comments