The Biggest Merger, Port Deadlines, and Challenges Facing Furniture Retailers

Originally published November 11, 2024. This version was rebuilt from the FTC's complaint release, Tempur Sealy's releases, the ILA-USMX joint statement and the BLS jobs report for the FIN archive, and the facts are as of that date.

In mid-November 2024 the biggest deal in bedding was heading to court, importers were counting down to a new port deadline and furniture factories were still trimming staff.

The short version

• The FTC had voted to block Tempur Sealy's proposed $4 billion acquisition of Mattress Firm.
• Tempur Sealy said hearings were scheduled to begin on November 12 and last two weeks.
• The ILA and USMX extended the Master Contract until January 15, 2025.

FTC challenges Tempur Sealy's acquisition of Mattress Firm

In July the FTC voted unanimously to block Tempur Sealy's proposed $4 billion acquisition of Mattress Firm, issuing an administrative complaint and authorizing a federal lawsuit. The agency argued the combined company would have the ability and incentive to suppress competition and raise prices.

Tempur Sealy said hearings were scheduled to begin on November 12, 2024 and were expected to last two weeks. To address FTC concerns it agreed to sell 73 Mattress Firm stores and its Sleep Outfitters subsidiary, with 103 stores, to Mattress Warehouse.

Tempur Sealy's third-quarter net sales rose 1.8% to $1,300.0 million. In September it had said it expected the deal to close in late 2024 or early 2025.

Update. Tempur Sealy completed the acquisition on February 5, 2025.

Shipping challenges looming

After the October strike, the ILA and USMX reached a tentative agreement on wages and agreed to extend the Master Contract until January 15, 2025 while they negotiated the remaining issues.

That left importers of furniture from Asia and Europe with a second possible East and Gulf Coast shutdown in the middle of winter.

Update. The two sides reached a tentative six-year agreement on January 8, 2025, averting any work stoppage.

Factory staffing

The October jobs report showed furniture and related product manufacturing employment at 338.9 thousand, down 0.7 thousand from September and down from 352.8 thousand a year earlier, seasonally adjusted.

Makers were keeping headcount tight while orders stayed soft.

Future outlook

The outcome of the Mattress Firm hearing would shape how mattresses reach shoppers for years. In the near term, port timing and soft factory demand were the bigger day-to-day concerns.

Related on FIN

• The Freight Mafia's New Playbook
• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.

Sources

• Federal Trade Commission, FTC moves to block Tempur Sealy's acquisition of Mattress Firm (July 2, 2024)
• Tempur Sealy International, Mattress Firm transaction update (SEC exhibit, Sept. 2024)
• Tempur Sealy International, Third quarter 2024 results
• Tempur Sealy International, Completes acquisition of Mattress Firm (Feb. 5, 2025)
• International Longshoremen's Association, Joint statement regarding Master Contract (Oct. 3, 2024)
• International Longshoremen's Association, ILA and USMX tentative agreement (Jan. 8, 2025)
• U.S. Bureau of Labor Statistics, Employment Situation, October 2024