Mattress and pillow producer Tempur-Pedic International completed its purchase of competitor Trinity, N.C.-based Sealy Corp. on March 18. With the closing of the deal, the company plans to change its name to Tempur Sealy International Inc.
“We are very excited about our future as Tempur Sealy International,” said Mark Sarvary, chief executive officer. “We remain confident that our shared know-how and expected efficiencies will result in tremendous value. Our focus now is on ensuring that our integration process remains on track and is as seamless as possible for all of our employees, customers and other stakeholders.”
The deal, valued at about $1.3 billion, creates the world’s largest bedding provider.
The company will seek stockholder approval for the proposed name change at its annual stockholders meeting in May. The company’s “iconic brands and consumer-facing marketing will not be affected by the planned corporate name change,” according to a news release. Global headquarters will be in Lexington, Ky. The company will continue to trade on the NYSE under the symbol TPX.
Tempur-Pedic acquired all of the outstanding common stock of Sealy for $2.20 per share and assumed or will repay all of Sealy’s outstanding convertible and nonconvertible debt, for a total transaction value of approximately $1.3 billion. As previously disclosed, the company funded the transaction and the refinancing of its existing credit facility with $1.770 billion senior secured facilities and $375 million of senior notes.