Federal Trade Commission v. Tempur Sealy International Inc. et al.

A Texas federal court denied the Federal Trade Commission’s motion to block Tempur Sealy International Inc.’s $5 billion acquisition of Mattress Firm Group, allowing the deal to proceed despite regulatory opposition. Beck Redden LLP served as local counsel in the case, alongside a team from Cleary Gottlieb, which was heard in the Southern District of Texas.

U.S. District Judge Charles Eskridge ruled that the FTC failed to demonstrate the merger would harm competition, rejecting claims that Tempur Sealy could foreclose rival mattress suppliers from selling in Mattress Firm stores. Notably, the judge found that the FTC’s market definition—focusing on premium mattresses priced at $2,000 or more—was unsupported. The court also credited Tempur Sealy’s commitments to maintain floor space for competitors and divest 176 stores and seven distribution centers to Mattress Warehouse. The court also held that the merger would not substantially harm competition and thus would not be anticompetitive.

The ruling, issued on January 31, 2025, came after two weeks of trial testimony in November, with closing arguments on December 16. While the FTC was granted a brief extension to seek appellate review, it ultimately declined to pursue an emergency injunction, allowing the acquisition to successfully close on February 5. Tempur Sealy and Mattress Firm have filed a separate challenge to the FTC’s administrative proceedings, arguing they are unconstitutional.

Beck Redden LLP was honored to play a role in this landmark case, which underscores the Firm’s strength in handling high-stakes antitrust litigation. The Beck Redden trial team was led by Alex Roberts, along with Lena Silva and Maryam Ghaffar. Appellate partners Russell Post and Parth Gejji and associate Anson Fung provided strategic support on legal issues during and after trial.