FTC Takes Action to Halt Tempur Sealy's Purchase of Mattress Firm
Money | July 2, 2024, 1:45 p.m.
The Federal Trade Commission unanimously voted to block Tempur Sealy International, Inc.'s $4 billion acquisition of Mattress Firm Group Inc., alleging that the deal would harm competition and lead to higher mattress prices. The proposed vertical acquisition would give Tempur Sealy the ability to suppress competition and limit rivals' access to Mattress Firm's nationwide network of stores, potentially leading to factory closures and layoffs in the mattress industry. The FTC alleges that Tempur Sealy aims to dominate the market and raise prices by controlling access to Mattress Firm's stores. The acquisition could harm competition in the premium mattress market, affecting working-class consumers and older adults who rely on financing to afford high-quality mattresses. The FTC has authorized a lawsuit in federal court to block the acquisition, emphasizing that the deal is about crippling competitors rather than creating efficiencies.