Tempur-Pedic, Sealy Deal Done

March 17, 2013  by in UnCategorized   

By Home Furnishings Business in Acquisition on March 18, 2013

Bedding supplier Tempur-Pedic International's (NYSE: TPX) acquisition of Sealy Corp. (NYSE: ZZ) is complete, and the company plans to change its corporate name to Tempur Sealy International. 

"We are pleased to announce the completion of our acquisition of Sealy and are very excited about our future as Tempur Sealy International," said Mark Sarvary, CEO. "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 combination of Tempur-Pedic and Sealy creates the world's largest bedding provider. Together, Tempur-Pedic and Sealy have a strong brand portfolio with with highly recognized brands in the industry, including Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster.

The company will seek stockholder approval for the proposed name change at its annual meeting of stockholders in May. The company's portfolio of brands and consumer-facing marketing will not be affected by the name change and will continue to be represented in the market as they are today. The company's global corporate headquarters will be in Lexington, Ky., and will continue to trade on the NYSE under the symbol TPX.

Under the deal, 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 non-convertible debt, for a total transaction value of about $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. 

The company will provide updated guidance for the combined company when it releases first quarter 2013 earnings in May.