Tempur Sealy's deal to buy Mattress Firm aims to 'eliminate' competition, document shows

(Reuters) - Mattress maker Tempur Sealy International's proposed $4-billion takeover of retailer Mattress Firm is intended to "eliminate future competition", according to a document unsealed by a Texas judge.

A May 2022 presentation to the board by the company's CEO stated that buying Mattress Firm would enable Tempur Sealy to "eliminate future competition" and "block future competition", the papers showed. The presentation did not name the executive.

Scott Thompson has been Tempur Sealy CEO since 2015, after shareholders ousted Mark Sarvary.

The document, unsealed on Wednesday, is among submissions by the U.S. Federal Trade Commission, which sued last month to block the cash-and-stock deal announced in May 2023.

The FTC expressed concerns about the deal'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 the deal, Tempur Sealy seeks to add Mattress Firm's 2,300-plus brick-and-mortar stores. The combined company will have about 3,000 stores globally, if the deal goes through.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai)