A federal judge in Texas has ruled in favor of Tempur Sealy International Inc., allowing the company to proceed with its $4 billion acquisition of Mattress Firm Inc. The decision marks a setback for the US Federal Trade Commission (FTC), which argued the merger would reduce competition and limit choices for mattress buyers.
Judge Charles Eskridge granted approval on Friday but delayed the deal’s closure until February 7, giving the FTC time to appeal. While his full reasoning remains sealed due to confidential business details, a redacted version will be released on Tuesday.
Tempur Sealy, known for brands like Tempur-Pedic, Sealy Posturepedic, and Stearns & Foster, is the world’s largest mattress maker. Mattress Firm, owned by South Africa’s Steinhoff International, runs over 2,300 stores across 49 states.
The FTC had sued to block the deal in July, arguing that it would harm competitors like Serta Simmons and Resident Home (maker of Nectar mattresses) by limiting their access to Mattress Firm’s retail network. However, Tempur Sealy countered that the rise of online mattress sales would maintain competition.
Following the ruling, Tempur Sealy expressed satisfaction, stating it aims to finalize the deal swiftly. The FTC has not yet announced whether it will appeal to the 5th Circuit Court of Appeals in New Orleans.
This decision adds to the FTC’s mixed track record in antitrust enforcement. While the agency blocked Illumina’s acquisition of Grail, it failed to stop Microsoft’s purchase of Activision Blizzard.