Tempur-Pedic Acquires Canadian Distributor

April 4, 2010  by in UnCategorized   

By Home Furnishings Business in Bedding on April 5, 2010

Mattress manufacturer Tempur-Pedic International Inc. (NYSE: TPX), Lexington, Ky., has acquired its Canadian distributor, Tempur Canada Inc., for an undisclosed amount.

As of last Thursday, Tempur Canada became a wholly-owned subsidiary and will continue to provide the Canadian market with products from Tempur-Pedic. In 2009, Tempur-Pedic International reported net sales of approximately $9 million to Tempur Canada.

"Prior to the acquisition, Canada was the largest bedding market where we were represented by a third-party distributor," said Tempur-Pedic CEO Mark Sarvary. "The Canadian market is large and our share is relatively low. Tempur Canada has done a tremendous job of developing this market and has positioned the Tempur-Pedic brand for increased investment. We are committed to growing Canadian market share, and so we will increase our investments in advertising and sales initiatives which over time we believe will drive significant sales and earnings growth."

The acquisition follows similar transactions in Austria, Australia, China and New Zealand over the last four years.

"We are pleased with the results we have experienced in driving sales growth and improved profitability from recently acquired markets," Sarvary said. "In 2010, we expect the Canadian acquisition will be modestly accretive to earnings."

The acquisition was effected through the Company's Dan-Foam ApS subsidiary, which is the company's primary foreign subsidiary and holds the company's interests in markets outside the United States.