(Reuters) – Mattress maker Tempur Sealy International's proposed $4 billion takeover of retailer Mattress Firm is aimed at “eliminating future competition,” according to a document unsealed by a Texas judge.
In a presentation the company's CEO made to the board in May 2022, it was stated that the purchase of Mattress Firm would allow Tempur Sealy to “eliminate future competition” and “block future competition,” according to the documents. The presentation did not mention the executive by name.
Scott Thompson has been the chief executive of Tempur Sealy since 2015, after shareholders ousted Mark Sarvary.
The document, disclosed Wednesday, is among filings with the U.S. Federal Trade Commission, which filed a lawsuit last month seeking to block the cash-and-stock deal announced in May 2023.
The FTC expressed concerns about the agreement's impact on competition, higher prices for consumers and potential job losses for manufacturing workers.
The two companies and the FTC did not immediately respond to Reuters' requests for comment.
Through this agreement, Tempur Sealy intends to add Mattress Firm's more than 2,300 physical stores. The combined company will have around 3,000 stores worldwide, if the deal is completed.
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