FTC vs. Tempur Sealy: An Examination of a Vertical Merger

Case Study

In May 2023, Tempur Sealy International, Inc. (Tempur Sealy) announced its intention to acquire Mattress Firm Group, Inc. (Mattress Firm). However, in July 2024, the Federal Trade Commission (FTC) sought to block the proposed merger. Subsequently, in February 2025, the courts ruled in favor of Tempur Sealy, allowing the merger to proceed. This proposed transaction is classified as a vertical merger between a manufacturer and a retailer. The primary competitive concern appears to be the size of the merging entities. Tempur Sealy is recognized as one of the largest mattress suppliers worldwide, while Mattress Firm is one of the largest bedding retailers in the United States, if not the largest.