Tempur Sealy International Inc., the mattress major with headquarters in Lexington, Kentucky, announced it signed an agreement to buy back Sealy brand rights in continental Europe (excluding the United Kingdom) from its Europe licensee. (In 2010, the former Sealy Inc. divested its European manufacturing operations and set up a licensing arrangement with Sapsa Group Srl.) The deal is subject to customary closing conditions and is expected to finalize in the second quarter of 2014. Financial terms of the agreement were not disclosed.
As part of the transaction, the companies have executed a supply agreement where former licensee Sapsa, based in Genoa, Italy, will become a contract manufacturer for certain Sealy-branded products. Sapsa operates two production facilities, in Genoa and in Amiens, France.
“The acquisition of Sealy brand rights in continental Europe represents a significant long-term growth opportunity,” said Mark Sarvary, Tempur Sealy chief executive officer. “We are excited at the prospects of further increasing our European presence and will leverage Tempur International’s European sales and marketing infrastructure to grow it in the years to come.”
The company said it plans to expand product offerings and distribution in Europe and expects sales and earnings there to begin having a significant impact on its bottom line in 2015 and beyond.
On April 8, Tempur Sealy announced it was acquiring Sealy brand rights in Japan.