The Federal Trade Commission (FTC) has unanimously voted to block Tempur Sealy International, Inc.’s proposed $4 billion acquisition of Mattress Firm Group Inc. The Commission issued an administrative complaint and authorized a lawsuit in federal court to halt the acquisition, alleging that Tempur Sealy—the world’s largest mattress supplier and manufacturer—would gain the ability and incentive to suppress competition and raise prices for mattresses for millions of consumers.
The proposed vertical acquisition would merge Tempur Sealy’s manufacturing and supply operations with Mattress Firm’s extensive retail footprint, potentially granting the combined company significant power within multiple segments of the mattress supply chain. Documents reveal that Tempur Sealy plans to limit competitors’ access to Mattress Firm’s nationwide network of stores, which could harm competition. This move is expected to affect primarily American manufacturers employing thousands of workers, who might lose access to this critical retail channel, potentially leading to reduced output, factory closures, and layoffs.
“Through emails, presentations, and other deal documents, Tempur Sealy has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” said Henry Liu, Director of the FTC’s Bureau of Competition. “This deal isn’t about creating efficiencies; it’s about crippling the competition, which would raise prices on an essential good and could lead to layoffs for good paying American manufacturing jobs in nearly a dozen states.”
Mattress Firm is considered one of the most important retail channels for mattresses due to its national footprint and unique ability to turn nascent brands into significant competitors. By acquiring Mattress Firm, Tempur Sealy could exert substantial control over rival suppliers such as Serta Simmons Bedding and Purple Innovation, Inc., potentially cutting or limiting their access to Mattress Firm’s stores.
The FTC alleges that this vertical acquisition would harm competition across the premium mattress market—a segment known for superior quality products with enhanced features. Many buyers in this segment are working-class older adults with limited disposable income who rely on financing for purchases. These premium mattresses are predominantly sold through brick-and-mortar furniture stores and specialty mattress stores like Mattress Firm.
If completed, the acquisition could enable Tempur Sealy's brands—including Stearns & Foster and Tempur-Pedic—to dominate over those of its competitors by restricting rivals' access to crucial retail channels. The resulting market dynamics could lead to higher prices, decreased product quality and choice, or reduced innovation.
According to the FTC's complaint, once acquired by Tempur Sealy, Mattress Firm could be used in various ways to disadvantage competitors: limiting rivals’ floor space access at stores, awarding higher commissions on sales of Tempur Sealy products over others', or steering customers away from competing products.
Historically, factory closures among competing mattress suppliers have benefited Tempur Sealy. The acquisition may further incentivize such closures across several states including Georgia, North Carolina, Ohio, Wisconsin as well as Arizona, Colorado, and Utah.
The Commission's vote was 5-0 in favor of issuing an administrative complaint and authorizing staff action for a temporary restraining order alongside a preliminary injunction request. Commissioner Melissa Holyoak issued a statement regarding this decision.
The federal court complaint will be filed in the U.S. District Court for the Southern District of Texas seeking preliminary relief pending an administrative proceeding. A public version of this complaint will be linked upon availability.
Note: An administrative complaint signifies that there is "reason to believe" a law has been or is being violated according to the Commission's assessment. This marks the start of formal proceedings before an administrative law judge where allegations will be tried.
The Federal Trade Commission works towards promoting competition while protecting and educating consumers. For more information on how competition benefits consumers or filing antitrust complaints visit their official platforms.
