Tempur-Pedic International Incorporated

Mattress mates: Tempur-Pedic buys Sealy for $1.3 billion

Mattress mates: Tempur-Pedic buys Sealy for $1.3 billion

Tempur-Pedic International Inc. is getting into bed with rival Sealy Corp. for $2.20 a share, the companies said Thursday.

Together, the mattress-makers will become a bedding giant  worth $2.7 billion in an industry already crowded with competitors such as Serta Inc. and Simmons Bedding Co.

Lexington, Ky.-based Tempur-Pedic has been around since the early 1990s and is known for its pressure-relieving memory foam products, which according to the company are based on NASA technology designed for astronauts.

Sealy, founded in its namesake town in Texas and now based in...

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