Tempur Sealy buys back Sealy brand rights in Japan

Tempur Sealy logoMattress major Tempur Sealy International Inc., with headquarters in Lexington, Kentucky, has signed an agreement to purchase Sealy brand rights from its former Japan licensee. The deal is expected to close during the company’s third quarter. Financial terms of the transaction were not disclosed.

The new Japan subsidiary will absorb the former licensee’s sales and marketing departments. Further, the two companies have executed a supply agreement, whereby the former licensee will become a contract manufacturer of certain Sealy-branded products in Japan.

“New market expansion is one of our four key strategic growth initiatives and is also an important driver in our long-term international revenue synergies targets,” said Mark Sarvary, Tempur Sealy chief executive officer. “The acquisition of Sealy brand rights in Japan is the first transaction whereby we have regained rights from a Sealy licensee arrangement. Japan has been an important market for our company for a long time and we are excited at the prospects of further increasing our penetration and market share with a strengthened brand and product offering.”

The company said it expects sales in Japan to represent its largest market outside of North America.

According to Tempur Sealy’s 2014 annual report, the Sealy business segment has 23 separate license agreements in effect with eight domestic and 15 foreign independent licensees. The international agreements cover the marketing of the Sealy brand in Australia, Brazil, Colombia, Dominican Republic, Honduras, Israel, Jamaica, Japan, Paraguay, Saudi Arabia, South Africa, Thailand, the United Kingdom and Venezuela. The company also has agreements in place with joint ventures in Asia, India and New Zealand.

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