The Federal Trade Commission has cleared the $1.3 billion merger of mattress makers Sealy Corp. and Tempur-Pedic International without conditions, according to agency documents made public today.
In September, Tempur-Pedic agreed to acquire Sealy for $229 million, as well assuming all of the company's debt.
The FTC issued a second request for information from the companies on November 30, a signal that the deal was receiving heightened scrutiny. But in the end, the FTC let the transaction proceed without divestitures, notifying the companies' lawyers in letters dated March 7.
“Upon further review of this matter, it now appears that no further action is warranted by the Commission at this time. Accordingly, the investigation has been closed,” stated the letters to Tempur-Pedic counsel William Berkowitz, a partner at Bingham McCutchen, and Joseph Tringali, who represented Sealy and is a partner at Simpson Thacher & Bartlett.
The letters also note that Jon Leibowitz, who stepped down as FTC chairman shortly before Edith Ramirez assumed the post on March 4, did not participate in the decision. Leibowitz continues to serve (at least for now) as a FTC commissioner.
"I am pleased that the FTC has concluded its review and we can complete the acquisition of Sealy,” said Tempur-Pedic chief executive officer Mark Sarvary in a news release. “The combination of Tempur-Pedic and Sealy unites two highly complementary companies with iconic brands to create the first full spectrum, global bedding company that addresses all market segments and consumer preferences.”