Tempur Sealy to discuss FTC challenge on Mattress Firm deal By Investing.com

LEXINGTON, Ky. – Tempur Sealy (NYSE:) International, Inc. (NYSE: TPX), a leading designer, manufacturer, distributor, and retailer of bedding products, announced it will conduct a conference call on Monday to address the U.S. Federal Trade Commission’s (FTC) recent complaint regarding its proposed acquisition of Mattress Firm Group Inc. The call, which will not include a question-and-answer session, is scheduled for 8:00 a.m. Eastern Time.

The FTC has filed a complaint challenging the combination of Tempur Sealy and Mattress Firm, citing concerns that need to be addressed in court. Consequently, Tempur Sealy’s commentary on the matter will be limited.

This conference call will be available for public listening through a webcast on the investor relations section of Tempur Sealy’s website, where it will also remain accessible for replay for 30 days following the event.

The acquisition’s completion is contingent upon various conditions, including the resolution of the FTC litigation and the procurement of necessary financing. Tempur Sealy acknowledges that there can be no guarantee that the acquisition will proceed as planned or that the anticipated benefits will be realized within the expected timeframe, if at all.

Tempur Sealy, known for its brands such as Tempur-Pedic®, Sealy®, and Stearns & Foster®, operates over 750 company-owned stores worldwide and sells products through third-party retailers and e-commerce channels. The company emphasizes its commitment to environmental responsibility to achieve carbon neutrality for its global wholly-owned operations by 2040.

This news article is based on a press release statement from Tempur Sealy International, Inc.

In other recent news, Tempur Sealy International Inc. is facing a challenge from the U.S. Federal Trade Commission (FTC) over its proposed acquisition of Mattress Firm Group Inc. The company, which has been negotiating with the FTC for approval, now faces federal litigation.

Tempur Sealy asserts that the merger would benefit stakeholders, particularly consumers, by combining Mattress Firm’s retail footprint with Tempur Sealy’s manufacturing strengths. To address FTC concerns, the company has shown a willingness to make concessions, including store divestitures and maintaining Mattress Firm as a multi-branded retailer.

Meanwhile, SoftBank (TYO:) Group has initiated a joint healthcare venture with Tempus AI. The partnership aims to use artificial intelligence to analyze personal medical data to enhance treatment recommendations, marking another significant step in SoftBank’s increasing investment activity in the AI sector.

Piper Sandler has maintained a positive outlook on Tempur Sealy, reiterating an Overweight rating. The firm’s optimism is fueled by several factors, including improving industry trends, strengthening sales for Tempur products, and the anticipated FTC decision on the company’s acquisition of Mattress Firm.

Finally, Tempur Sealy has reported stable financial results for the first quarter of 2024, with net sales reaching $1.2 billion and an adjusted EPS of $0.50. The company’s adjusted EBITDA remained consistent at $198 million compared to the same period last year.

These developments showcase the ongoing efforts of Tempur Sealy to navigate regulatory challenges and drive growth in a competitive market.

InvestingPro Insights

In light of Tempur Sealy International’s recent developments and upcoming conference call, investors may be keen on understanding the current financial health and market sentiment surrounding the company. According to InvestingPro data, Tempur Sealy (NYSE: TPX) has a market capitalization of $8.39 billion, with a P/E ratio of 23.25 reflecting investor expectations of future earnings. Notably, the company’s P/E ratio has adjusted slightly to 23.05 over the last twelve months as of Q1 2024, indicating a stable valuation relative to earnings.

InvestingPro Tips suggest that Tempur Sealy has demonstrated a commitment to shareholder returns, having raised its dividend for three consecutive years. Moreover, the company’s stock has yielded a strong return over the last five years, underscoring its growth trajectory. However, analysts have tempered expectations, with nine analysts revising their earnings downwards for the upcoming period, which could be a point of consideration for investors looking at the short-term outlook.

For those interested in a deeper analysis, InvestingPro offers additional insights on Tempur Sealy’s financial performance and market trends. Subscribers can find more tips and data points, such as revenue growth and operating income margins, to inform their investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 7 additional InvestingPro Tips available that could help investors gauge the potential impact of the FTC’s complaint and the proposed acquisition of Mattress Firm on Tempur Sealy’s future performance.

It’s worth noting that while the acquisition’s success is uncertain due to regulatory challenges, Tempur Sealy’s financial resilience, as indicated by its profitability over the last twelve months and consistent dividend growth, may provide some reassurance to stakeholders. As the market anticipates the outcome of the FTC litigation, these financial metrics and expert analyses could prove invaluable for making informed investment decisions.

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