(Reuters) – Tempur Sealy (NYSE:) International said on Monday it plans to sell more than 100 stores in a bid to win regulatory approval for its $4 billion deal with Mattress Firm.
Tempur Sealy’s merger with Mattress Firm, which would create an empire of about 3,000 stores worldwide, has raised concerns about price increases and job losses and prompted the U.S. Federal Trade Commission to file a lawsuit in July seeking to block the merger.
The mattress maker, which has been acquiring retailers to expand its presence in the segment, now plans to sell 73 Mattress Firm stores to independent bedding retailer Mattress Warehouse.
The company also intends to open 103 Sleep Outfitters-branded mattress specialty stores and seven distribution centers.
Tempur Sealy said the sale is contingent on finalizing an agreement with Mattress Firm.
The Lexington, Kentucky-based company said it will continue to supply its products to the sold Mattress Firm and Sleep Outfitters stores.
The hearing in the legal action before the U.S. Trade Commission (FTC) is scheduled to begin on November 12 and last two weeks.
In a separate statement, Tempur Sealy said it had entered into a $1.6 billion term loan agreement to support fund a cash-and-stock transaction to expand Mattress Firm to more than 2,300 brick-and-mortar stores.
