The Tempur Sealy merger with Mattress Firm faced an uncertain path, but now that it has been secured, the companies will be housed under a new name, Somnigroup International.

Officially, Tempur Sealy International, Inc. will become Somnigroup International Inc. on Feb. 18, the mattress brand announced on Feb. 5.

Tempur Sealy ranked No. 159 in Digital Commerce 360’s Top 1000 on its own. The database includes a ranking of North America’s leading retailers by online sales. Mattress Firm was No. 276. Digital Commerce 360 sorts both companies in the Housewares & Home Furnishings category.

Why Tempur Sealy is changing its name to Somnigroup

Scott Thompson will be the chairman and CEO of the newly named company, Somnigroup International Inc. He explained the impetus behind the change in details released ahead of the switch.

“We are thrilled to announce a new name to our expanded vision,” he stated. “The name Somnigroup is derived from the Latin somn meaning sleep, omni meaning all, and ‘group’ to represent our omnichannel strategy.”

Ultimately, the merger survived despite a regulatory challenge. The Federal Trade Commission voted to block the merger in June 2024, and the deal was held in limbo amid appeals.

“Through emails, presentations, and other deal documents, Tempur Sealy has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” said Henry Liu, director of the FTC’s Bureau of Competition in blocking the merger, in 2024.

However, the companies appealed, and a federal judge did not find the FTC persuasive. The judge determined there would still be sufficient competition in the mattress marketplace with the combined company.

“To be clear, it’s been determined that the proposed acquisition won’t substantially harm competition,” U.S. District Judge Charles Eskridge wrote in an opinion.

Closing the Tempur Sealy-Mattress Firm merger

Tempur Sealy offered $4 billion to acquire Mattress Firm. It funded the deal with about $2.7 billion plus proceeds from existing borrowings and 34.2 million shares of common stock.

Thompson has been at the helm of Lexington, Kentucky-based Tempur Sealy for a decade. Prior to joining the mattress firm, Thompson was president and chief executive officer of Dollar Thrifty Automotive Group, Inc.

The company noted that Mattress Firm, Dreams and Tempur Sealy will operate as decentralized business units under Somnigroup. Mattress Firm and Dreams will continue to operate as multi-branded retailers. Meanwhile, Tempur Sealy, primarily a manufacturer, will continue to serve third-party retailers as well as Mattress Firm, Dreams and Tempur Sealy’s direct-to-consumer channels.

Mattress Firm has over 2,000 locations in the United States and has been helmed by retail veteran John Eck since 2019. The company did not respond to a request about his role at Somnigroup. However, Thompson said the name does more than combine the companies. He said it positions them for the future.

“The name Somnigroup International reflects our position as a global holding company and provider of sleep solutions with a portfolio of outstanding businesses — Tempur Sealy, Dreams and Mattress Firm — as well as the future direction of the company,” he explained. “We look forward to continuing to improve people’s lives through better sleep for the next 100 years and beyond.”

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