Tempur Sealy's Thompson on $4 billion acquisition of Mattress Firm: 'We are excited by the long-term growth prospects for our global vertically integrated company'

The U.S.’s biggest bedding retailer has been acquired by the world’s largest mattress manufacturer, according to media reports. 

CBS News reported that Tempur Sealy announced on Tuesday its intent to purchase Houston-based Mattress Firm for nearly $4 billion in cash and stocks.

Citing Tempur Sealy, CBS News reported that the deal is slated to be completed in the second half of next year, with Mattress Firm to continue operations as a separate business entity under the former company’s umbrella.

Tempur Sealy head Scott Thompson anticipates many benefits from the acquisition once it’s set in stone.

"We are excited by the long-term growth prospects for our global vertically integrated company," Thompson, the business’s founder and chief executive officer (CEO), said, according to CBS News. "Mattress Firm has been a valued retail partner for more than 35 years, and we look forward to welcoming their talented workforce of more than 8,100 employees to the Tempur Sealy family."

Per an article on the Business of Home website, Tempur Sealy’s purchase will lead to a footprint of about 3,000 retail locations, 30 e-commerce platforms, 71 manufacturing facilities and several research and development (R&D) workshops.

Its workforce will consist of 21,000 employees working in over 100 countries.

Business of Home reported that Tempur Sealy and Mattress Firm had been communicating off and on during the previous two years.

Houston Business Journal reported that the $4 billion price tag includes about $2.7 billion in cash, which is likely to be adjusted, and around 34 million shares of TPX common stock worth $1.3 billion as of Monday.

The publication reported Tempur Sealy, which is headquartered in Lexington, Kentucky, will add two Mattress Firm directors to its board of directors in accordance to an agreement between the parties.

“This transaction advances all four of our key long-term initiatives: To develop the highest quality bedding products, promote brands with compelling marketing, optimize our diverse omnichannel distribution platform and drive EPS growth," Thompson said in the report. "Consistent with our M&A strategy, this acquisition will make Tempur Sealy more competitive by bringing us closer to consumers and facilitating continued innovation.”