Tempur Sealy Files Case to Enjoin FTC's Administrative Merger Challenge
Tempur Sealy International (NYSE: TPX) has filed a complaint in the United States District Court for the Southern District of Texas seeking an injunction against the Federal Trade Commission's (FTC) administrative proceeding challenging the company's merger with Mattress Firm Group Inc. The action argues that the FTC's separate administrative proceeding, in addition to the pending federal court proceeding, violates constitutional protections.
The FTC's challenge to the merger is already scheduled for a federal court hearing beginning November 12, 2024. Tempur Sealy CEO Scott Thompson emphasized the bedding industry's high competitiveness and stated that the merger would benefit consumers and employees through enhanced product innovation and improved customer experience. The company expects the litigation process to conclude in the coming months, potentially allowing the transaction to close in late 2024 or early 2025.
Tempur Sealy International (NYSE: TPX) ha presentato un reclamo nella Corte Distrettuale degli Stati Uniti per il Distretto Meridionale del Texas, cercando un ingiunzione contro il procedimento amministrativo della Federal Trade Commission (FTC) che contesta la fusione dell'azienda con Mattress Firm Group Inc. L'azione sostiene che il procedimento amministrativo separato della FTC, oltre al procedimento già pendente in tribunale federale, viola le protezioni costituzionali.
La sfida della FTC alla fusione è già programmata per un'udienza in tribunale federale che inizierà il 12 novembre 2024. Il CEO di Tempur Sealy, Scott Thompson, ha sottolineato l'alta competitività dell'industria del bedding e ha dichiarato che la fusione porterà vantaggi ai consumatori e ai dipendenti attraverso un'innovazione di prodotto migliorata e un'esperienza cliente migliorata. L'azienda si aspetta che il processo di contenzioso si concluda nei prossimi mesi, permettendo potenzialmente di finalizzare la transazione entro la fine del 2024 o all'inizio del 2025.
Tempur Sealy International (NYSE: TPX) ha presentado una queja en el Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Texas, solicitando una instrucción contra el procedimiento administrativo de la Comisión Federal de Comercio (FTC) que impugna la fusión de la empresa con Mattress Firm Group Inc. La acción argumenta que el procedimiento administrativo separado de la FTC, además del proceso pendiente en el tribunal federal, viola las protecciones constitucionales.
El desafío de la FTC a la fusión ya tiene programada una audiencia en el tribunal federal que comenzará el 12 de noviembre de 2024. El CEO de Tempur Sealy, Scott Thompson, enfatizó la alta competitividad de la industria del bedding y afirmó que la fusión beneficiará a los consumidores y empleados a través de una innovación de productos mejorada y una mejor experiencia del cliente. La empresa espera que el proceso de litigio concluya en los próximos meses, lo que podría permitir el cierre de la transacción a finales de 2024 o principios de 2025.
템퍼 시일리 인터내셔널 (NYSE: TPX)은 텍사스 남부 지방법원에 충돌을 제기하며 매트리스 퍼밍 그룹 Inc.와의 합병에 도전하는 연방 거래 위원회 (FTC)의 행정 절차에 대한 금지명령을 요청하였습니다. 본 소송은 FTC의 별도의 행정 절차가 현재 진행 중인 연방 법원 절차와 함께 헌법적 보호를 위반한다고 주장합니다.
FTC의 합병에 대한 도전은 이미 2024년 11월 12일에 시작되는 연방 법원 공판을 예정하고 있습니다. 템퍼 시일리의 CEO인 스콧 톰슨은 침대 산업의 높은 경쟁력을 강조하며, 합병이 소비자와 직원들에게 혜택을 줄 것이며 제품 혁신과 고객 경험을 개선할 것이라고 밝혔습니다. 회사는 소송절차가 몇 달 내에 끝날 것으로 예상하며, 이는 2024년 말 또는 2025년 초에 거래를 마감할 수 있는 기회를 제공할 것입니다.
Tempur Sealy International (NYSE: TPX) a déposé une plainte devant le Tribunal de district des États-Unis pour le district sud du Texas afin de demander une interdiction contre la procédure administrative de la Federal Trade Commission (FTC) qui remet en question la fusion de l'entreprise avec Mattress Firm Group Inc. L'action soutient que la procédure administrative séparée de la FTC, en plus de la procédure en cours devant le tribunal fédéral, viole les protections constitutionnelles.
Le défi de la FTC contre la fusion est déjà prévu pour une audience devant le tribunal fédéral qui commencera le 12 novembre 2024. Le PDG de Tempur Sealy, Scott Thompson, a souligné la forte compétitivité de l'industrie du matelas et a déclaré que la fusion bénéficiera aux consommateurs et aux employés grâce à une innovation produit accrue et une amélioration de l'expérience client. L'entreprise s'attend à ce que le processus de litige se termine dans les mois à venir, permettant potentiellement de finaliser la transaction fin 2024 ou début 2025.
Tempur Sealy International (NYSE: TPX) hat eine Klage eingereicht beim US-Bezirksgericht für den Südbezirk von Texas, um eine Unterlassungsverfügung gegen das Verwaltungsverfahren der Federal Trade Commission (FTC) zu erwirken, das die Fusion des Unternehmens mit Mattress Firm Group Inc. in Frage stellt. Die Klage argumentiert, dass das separate Verwaltungsverfahren der FTC, zusätzlich zu dem laufenden Verfahren vor dem Bundesgericht, verfassungsmäßige Schutzrechte verletzt.
Die Herausforderungen der FTC gegen die Fusion sind bereits für eine Anhörung vor dem Bundesgericht am 12. November 2024 angesetzt. Der CEO von Tempur Sealy, Scott Thompson, betonte die hohe Wettbewerbsfähigkeit der Matratzenindustrie und erklärte, dass die Fusion den Verbrauchern und Mitarbeitern zugutekommen wird, indem sie die Produktinnovation und die Kundenerfahrung verbessert. Das Unternehmen erwartet, dass der Rechtsstreit in den kommenden Monaten abgeschlossen wird, was möglicherweise eine Schließung der Transaktion Ende 2024 oder Anfang 2025 ermöglichen könnte.
- Potential merger with Mattress Firm could enhance product innovation and customer experience
- Company expects litigation process to conclude in coming months
- Anticipated transaction closure in late 2024 or early 2025, consistent with previous expectations
- FTC challenge to the merger through administrative and federal court proceedings
- Legal complications may delay or prevent the merger's completion
Insights
This legal action by Tempur Sealy against the FTC is a significant development in the ongoing merger saga with Mattress Firm. The company's decision to file for an injunction against the FTC's administrative proceeding raises important constitutional questions and could have far-reaching implications for how antitrust cases are handled.
The key issues at stake are:
- Dual-track litigation: Tempur Sealy is challenging the FTC's ability to pursue both federal court and administrative proceedings simultaneously.
- Constitutional protections: The company argues that this dual approach violates their constitutional rights, likely referring to due process concerns.
- Merger timeline: Despite the legal challenges, Tempur Sealy maintains its expected closing timeline of late 2024 or early 2025.
This case could potentially set a precedent for how antitrust regulators approach future merger challenges. If successful, it might limit the FTC's ability to use administrative proceedings alongside federal court actions, potentially streamlining the merger review process for companies in the future.
The ongoing legal battle over Tempur Sealy's acquisition of Mattress Firm presents both risks and opportunities for investors. Key financial considerations include:
- Merger synergies: The combined entity could potentially realize significant cost savings and revenue growth opportunities, enhancing shareholder value.
- Legal costs: Prolonged litigation will increase expenses, potentially impacting near-term profitability.
- Market uncertainty: The unresolved merger situation may create volatility in Tempur Sealy's stock price.
- Industry consolidation: If successful, this merger would significantly alter the competitive landscape in the mattress industry.
While the company remains confident in closing the deal, investors should be prepared for potential outcomes ranging from a successful merger to a forced abandonment of the transaction. The financial impact of each scenario could be substantial, affecting Tempur Sealy's market position, growth prospects and valuation.
– Company Argues FTC is Violating Constitutional Protections
The action filed today asks the Southern District of
The Company's agreement to acquire Mattress Firm is already being challenged in federal court by the FTC, with the hearing scheduled to begin on November 12, 2024, and expected to last two weeks.
Tempur Sealy Chairman and CEO Scott Thompson commented, "The bedding industry is highly competitive, including thousands of brick-and-mortar storefronts and a vast online marketplace. The combination of Tempur Sealy and Mattress Firm will deliver incremental benefits to consumers and opportunities for employees, from enhanced product innovation to an improved customer buying experience and strengthening the entire financial position for the company. We intend to vigorously defend our transaction in the upcoming trial in federal court, which is the proper forum to address this issue."
The Company continues to believe that a successful litigation process can be completed in the coming months, which would allow the transaction to close in late 2024 or early 2025, consistent with previous expectations.
Forward-Looking Statements
This press release contains statements that may be characterized as "forward-looking" within the meaning of the federal securities laws. Such statements might include information concerning one or more of the Company's plans, guidance, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "will," "targets," "expects," "anticipates," "plans," "proposed," "intends," "believe" and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to the Company's expectations regarding the expected Mattress Firm acquisition, including the outcome of the pending litigation with the FTC, expectations regarding post-closing supply agreements, future performance, integration of acquired companies with our business and the ability of the Company to close the Mattress Firm acquisition on the timeline indicated or at all. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with receipt of regulatory approvals and satisfaction of closing conditions prior to consummation of the acquisition, Mattress Firm's ongoing operations; the ability to successfully integrate Mattress Firm into Tempur Sealy's operations and realize synergies from the transaction; the possibility that the expected benefits of the acquisition are not realized when expected or at all; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufacturer, distributor and retailer of bedding products worldwide, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and our popular non-branded offerings consist of value-focused private label and OEM products. At Tempur Sealy we understand the importance of meeting our customers wherever and however they want to shop and have developed a powerful omni-channel retail strategy. Our products allow for complementary merchandising strategies and are sold through third-party retailers, our over 750 Company-owned stores worldwide and our e-commerce channels. With the range of our offerings and variety of purchasing options, we are dedicated to continuing to turn our mission to improve the sleep of more people, every night, all around the world into a reality.
Importantly, we are committed to carrying out our global responsibility to protect the environment and the communities in which we operate. As part of that commitment, we have established the goal of achieving carbon neutrality for our global wholly owned operations by 2040.
Tempur Sealy Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.
FAQ
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