Tempur-Pedic Agrees to Acquire Sealy for $2.20 a Share

Tempur-
Peki International Limited
Agreed to buy Eli Corp.
For about $0. 229 billion, the two largest listed mattress companies were merged, ending more than 20
A year of private business
Both stocks have increased their share in trading.
$2 quote. 20 is 2.
It was 8% higher than Sealy\'s closing price yesterday. Tempur-
The pioneer of memory-pedick
The foam mattress, based in Lexington, Kentucky, will bear or repay all outstanding and convertible debts of Sealy, with a total transaction value of $1.
3 billion, according to a statement today.
Both bedding companies were owned by private equity in the past, but have taken a different path in the past 20 years. Tempur-
Founded in 1992, Pedic\'s sales grew 28% last year to $1, making it the largest listed mattress manufacturer by revenue. 42 billion. Sealy, a 131-year-
The old company that became a household name fell to the first place. 2 with $1.
At 23 billion of revenue, its share price fell from 90% initial public offerings in 2011 to a low of more than 2006.
Increased competition in Tempur
Pedic\'s high-end segment has slowed sales growth, and its share price has fallen more than 60% since hitting its peak in April 18.
Mark Sarvary, chief executive, said the merger would spur new growth.
\"Our success in professional category growth has attracted new entrants,\" Sarvary said today at an analyst conference call . \".
\"Recently, it has had a negative impact on our business.
The merger with Sealy allows us to compete across the market.
\"Brazilian second
H Partners Management Co. , Ltd. is the largest shareholder of the transaction.
Today in a letter to the board of directors of Trinity College, North Carolina --
The fund, based in Sealy, said the directors did not seek approval from all the owners of the company, which was \"very troublesome \".
The companies said in the statement that shareholders holding more than 51% of Sealy\'s shares and the board of directors of both companies approved the deal.
H Partners owns 17% of Sealy\'s shares, according to Bloomberg.
In the letter, Usman Nabi and Arik Ruchim of H Partners wrote: \"We ask the board to fulfill its fiduciary responsibility to maximize value for all shareholders . \".
\"We reserve all the right to seek legal remedies to protect the value of the investment.
\"Sealy in March was publicly criticized by H Partners and FPR Partners LLC, the third of the company-
Biggest shareholder, private role
Stock company KKR & Co.
Help make mattresses.
Hedge funds say KKR, which owns 44% of Sealy, overburdened the company\'s debt and made a strategic mistake to cut revenue by half.
In response, Sealy said the statements were \"warlike\" and did not help.
In a letter dated March 23, the company stated that KKR \"has always been a responsible partner\" and stated that the composition of the board is in line with the independent guidelines of the New York Stock Exchange.
Mattress manufacturers have always been a private hit target
Before the economic crisis, stock companies led to a decline in demand. Tempur-
A big group company owned ten years ago.
The brands available include Yili Meizi mattress and Bear Stearns and nurture.
Sealy, who has already bought it five times.
Company owners have been acquired by New York since 1989
Based in KKR on March 2004, it costs about $1.
5 billion from investment groups including Bain Capital Limited
Former equity firm led by Republican presidential candidate Mitt Romney. KKR paid $5.
Bedding makers are $78 per share and are available at $16 per share two years later.
Stocks peaked at $17.
U. S. stocks fell in April 2007. S.
The recession began later that year.
It never recoveredcrisis highs. Sealy rose 2.
3% closed at $2. 19 in New York.
Shares rose 24% this year as of yesterday. Tempur-
Pedic shares rose 14% to $30, the biggest increase since April 2009.
It dropped 49% this year to yesterday. Tempur-
Since its 2003 IPO, Pedic\'s share price has more than doubled.
After the company confirmed its 2012 earnings and sales forecast, stocks began to plummet in April, below analysts\' estimates.
Temple, June
Pedic lowered its full
Annual profit and revenue forecasts point to declining sales and increased competition in April.
The two companies said today\'s deal, which is expected to be completed in the first half of 2013, will save more than $40 million in costs in the third year. Tempur-
Pedic sells some mattresses for more than $9,000, specifically for non-
Spring mattress to make its products have pressure
Absorb the foam and use NASA\'s first-ever technology to support astronauts in spacecraft.
About half of Sealy\'s sales come from mid-
According to regulatory documents and data compiled by Bloomberg, mattress retail prices are priced at $599 to $999.
In the past two years, the company has begun to strengthen its more expensive product line, producing the first foam mattress Embody in 2010, and creating a professional department to develop new-
Technical product line in 2011.
Best Prescription, gel line-
Mattress-based, only to the store this year. “Now, Tempur-
Pedic can take a share of the low-end memory bubble market without worrying too much about the negative impact on its high-priced products, \"said Peter Keith, analyst at Piper Jaffray & Co.
Said in a note to the customer today.
Proportion in Xili
A reasonably priced mattress poses a risk to Tempur
According to Kevin Cassidy, an analyst at Moody\'s, pedik
Latecomers in the bedding industry.
High sales at the same timeend and low-
Mid-range mattresses have been growing
The price of the product is behind.
Since 1989, Sealy has traded from Gibbons, Green & van Amerongen Ltd.
Clipper Group to Zell/Chillmark Fund LP to Bain to KKR.
Bain led Sealy\'s group purchase in 1997 for $0. 833 billion, and sold the company to KKR seven years later, earning more than five times the original equity investment, the acquisition company, led by Henry Claus and George Roberts. Lawrence J.
The companies said today that Sealy CEO Rogers has been working for mattress company for 33 years and will continue to be in his role to report to Sarvary.
Rogers was chosen in 2008 to follow 18-year-old David mcalcam.
KKR has retained a year of senior staff from Bain\'s ownership.
KKR said in December that Rogers would retire by the end of 2012.
Xili is unlikely to get a higher bid to say that Piper Jaffray\'s Keith. Tempur-Pedic’s $2.
Stock quotes, Keith said, \"are a cheap price for a strong brand that seems to be in the early stages of transition \".
Sealy\'s bonds rose after the deal was announced.
$268 for the company9 million of 8.
25% bonds due in June 2014 climbed 1. 5 cents to 101.
$5 cents, yield 7.
29% as of 10: 07m.
According to Trace, in New York, bonds
Price reporting system for financial industry regulators.
The last Bond transaction was yesterday. 24.
Bank of America Limitedwas Tempur-
Financial advisor and Citigroup at Pedicadvised Sealy.
Binham mccachan law firm offers legal advice to Temur
Hao, Sheng Xin and Yili law firm played this role.