Mattress Firm Triumphs in FTC Antitrust Case, Proceeds with Tempur Sealy Acquisition
Deal News | Feb 07, 2025 | Simpson Thacher & Bartlett
On January 31, 2025, a significant legal victory was achieved by Simpson Thacher & Bartlett on behalf of Mattress Firm Group Inc. This victory occurred in the Southern District of Texas where U.S. District Judge Charles Eskridge denied the Federal Trade Commission's (FTC) motion for a preliminary injunction. The FTC had sought to block Mattress Firm's acquisition by Tempur Sealy International, Inc., citing concerns that the merger would lead to increased prices, lower quality, and fewer choices for consumers. However, the court found these concerns unfounded, ruling that the acquisition is either neutral or even procompetitive in nature. This decision allows the acquisition, a merger with potential significant market implications, to proceed, contrary to the FTC's antitrust concerns.
Sectors
- Legal Services
- Retail
- Manufacturing
Geography
- United States – The legal proceedings took place in the Southern District of Texas, and the FTC, a U.S. federal agency, was involved in the case.
Industry
- Legal Services – Simpson Thacher & Bartlett provided legal representation to Mattress Firm in court against the FTC's antitrust challenge.
- Retail – The deal involves Mattress Firm Group Inc., a major player in the retail industry, specifically within mattress and bedding sales.
- Manufacturing – Tempur Sealy International, Inc., the acquiring company, operates in the manufacturing sector, producing mattresses and related products.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mattress Firm Group Inc. | Target Company | Company | A leading retailer specializing in mattresses and bedding products, based in the United States. |
| Tempur Sealy International, Inc. | Bidding Company | Company | A prominent manufacturer of mattresses and bedding products, known for its Tempur-Pedic and Sealy brands. |
| Federal Trade Commission | Government | Government | A U.S. federal agency responsible for enforcing antitrust laws and promoting consumer protection. |
| Simpson Thacher & Bartlett | Legal Advisor | Company | A multinational law firm that represented Mattress Firm in the legal proceedings against the FTC. |
| U.S. District Judge Charles Eskridge | Judge | People | The judge who presided over the case and denied the FTC's motion for a preliminary injunction. |