Tempur-pedic to acquire mattress maker Sealy for $2.20 A share
Tempur-Pedic International Inc., a pioneer of memory-foam mattresses, agreed to buy Sealy Corp. for $2.20 a share to create a global bedding provider.
The offer is 2.8 percent more than Sealy’s closing price yesterday. Tempur-Pedic, based in Lexington, Kentucky, will also assume or repay all of Sealy’s outstanding and convertible debt, according to a statement today.
Sealy, which dates back to 1881, makes mattresses and foundations with brands including Sealy Posturepedic and Stearns & Foster. The transaction, which is expected to be completed in the first half of 2013, will create cost savings of more than $40 million by the third year, the companies said.
Sealy rose 9.8 percent to $2.35 at 7:11 a.m. in New York, before the markets opened. Tempur-Pedic fell 2.9 percent to $26.78 yesterday and had declined 49 percent this year.