Tempur-Pedic Completes Acquisition of Sealy
- Unveils Tempur Sealy International, Inc. as Planned New Corporate Name
LEXINGTON, Ky. and TRINITY, N.C., March 18, 2013
LEXINGTON, Ky. and TRINITY, N.C., March 18, 2013 /PRNewswire/ --Tempur-Pedic
International Inc. ("Tempur-Pedic" or the "Company") (NYSE: TPX), a leading
manufacturer, marketer and distributor of premium mattresses and pillows
worldwide, has completed its previously announced acquisition of Sealy
Corporation ("Sealy") (NYSE: ZZ). The Company also announced that it intends
to change its corporate name to Tempur Sealy International, Inc.
"We are pleased to announce the completion of our acquisition of Sealy and are
very excited about our future as Tempur Sealy International," said Mark
Sarvary, Chief Executive Officer. "We remain confident that our shared
know-how and expected efficiencies will result in tremendous value. Our focus
now is on ensuring that our integration process remains on track and is as
seamless as possible for all of our employees, customers and other
The combination of Tempur-Pedic and Sealy creates the world's largest bedding
provider. Together, Tempur-Pedic and Sealy have the strongest brand portfolio
with the most highly recognized brands in the industry, including Tempur®,
Tempur-Pedic®, Sealy®, Sealy Posturepedic®, Optimum™ and Stearns & Foster®.
In addition, the Company has the most comprehensive suite of bedding products
available in the market with products for almost every consumer preference and
Corporate Name Change
To recognize the transformational nature of this combination, the Company
intends to change its corporate name to Tempur Sealy International, Inc. The
Company will seek stockholder approval for the proposed change at its Annual
Meeting of Stockholders in May 2013. The Company's portfolio of iconic brands
and consumer-facing marketing will not be affected by the planned corporate
name change and thus will continue to be represented in the market as they are
today. The Company's global corporate headquarters will be in Lexington, KY.
The Company will continue to trade on the NYSE under the symbol "TPX".
Strategic Benefits of Combination
oTempur-Pedic and Sealy have the most iconic and recognized bedding brands
in the world
oSealy's strength in innerspring and hybrid mattresses fit seamlessly with
Tempur-Pedic's leadership in visco-elastic mattresses, adjustable bases
oHighly complementary global footprint with strong presence in North
America, South America, Europe, Asia, and Australia
oAbility to create significant shareholder value with annual cost synergies
in excess of $40 million expected by the third year realized through
purchasing, supply chain and increased efficiencies
oAttractive upside from revenue synergies as a result of a broader product
offering and access to more channels, including international expansion
oStrong cash flow characteristics will enable rapid debt reduction and
continued investment in growth initiatives
oA strong management team with extensive industry and global consumer
Transaction and Financial Details
Tempur-Pedic acquired all of the outstanding common stock of Sealy for $2.20
per share and assumed or will repay all of Sealy's outstanding convertible and
non-convertible debt, for a total transaction value of approximately $1.3
billion. As previously disclosed, the Company funded the transaction and the
refinancing of its existing credit facility with $1.770 billion senior secured
facilities and $375 million of senior notes.
The Company intends to provide updated guidance for the combined company when
it releases first quarter 2013 earnings in early May.
On March 18, 2013, the Company posted a new corporate Investor Presentation to
its Investor Relations website at http://investor.tempurpedic.com.
About Tempur-Pedic International
Tempur-Pedic International Inc. (NYSE: TPX) is the world's largest bedding
provider. The Company intends to change its corporate name to Tempur Sealy
International, Inc. and will seek stockholder approval for the proposed name
change at its Annual Meeting of Stockholders in May 2013. Tempur-Pedic
International develops, manufactures and markets mattresses, foundations,
pillows and other products. The Company's brand portfolio includes many of
the most highly recognized brands in the industry, including Tempur®,
Tempur-Pedic®, Sealy®, Sealy Posturepedic®, Optimum™ and Stearns & Foster®.
World headquarters for Tempur-Pedic International is in Lexington, KY. For
more information, visit http://www.tempurpedic.comor http://www.sealy.com, or
This release contains "forward-looking statements," within the meaning of
federal securities laws, which include information concerning one or more of
the Company's plans, objectives, goals, strategies, and other information that
is not historical information. When used in this release, the words
"estimates," "expects," "anticipates," "projects," "plans," "proposed,"
"intends," "believes," 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
intended change of its corporate name, and benefits anticipated from the
merger with Sealy Corporation, including with respect to anticipated
synergies, strong cash flow and debt repayment. All forward looking statements
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 those expressed as forward-looking
statements. These risk factors include general economic, financial and
industry conditions, particularly in the retail sector, as well as consumer
confidence and the availability of consumer financing; uncertainties arising
from global events; the effects of changes in foreign exchange rates on the
Company's reported earnings; consumer acceptance of the Company's products;
industry competition; the efficiency and effectiveness of the Company's
advertising campaigns and other marketing programs; the Company's ability to
increase sales productivity within existing retail accounts and to further
penetrate the Company's retail channel, including the timing of opening or
expanding within large retail accounts; the Company's ability to expand brand
awareness, distribution and new products; the Company's ability to
continuously improve and expand its product line, maintain efficient, timely
and cost-effective production and delivery of its products, and manage its
growth; the effects of strategic investments on the Company's operations;
changes in foreign tax rates and changes in tax laws generally, including the
ability to utilize tax loss carry forwards; changing commodity costs; the
effect of future legislative or regulatory changes; the possibility of
litigation (including relating to the Sealy merger); and the ability to
successfully integrate Sealy into Tempur-Pedic's operations and realize
synergies from the proposed transaction.
Additional information concerning these and other risks and uncertainties are
discussed in the Company's filings with the Securities and Exchange
Commission, including without limitation the Company's Annual Report on Form
10-K under the headings "Special Note Regarding Forward-Looking Statements"
and "Risk Factors." Any forward-looking statement speaks only as of the date
on which it is made, and the Company undertakes no obligation to update any
forward-looking statements for any reason, including to reflect events or
circumstances after the date on which such statements are made or to reflect
the occurrence of anticipated or unanticipated events or circumstances.
SOURCE Tempur-Pedic International Inc.
Contact: Investor Contact: Mark Rupe, Vice President, Tempur-Pedic
International Inc., 800-805-3635, firstname.lastname@example.org; or Media
Contacts: Michael Geller, Edelman for Tempur-Pedic International,
+1-212-729-2163, Mike.Geller@edelman.com, or Trevor Gibbons, Edelman for
Tempur-Pedic International, +1-212-704-8166, Trevor.Gibbons@edelman.com
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