LEHI, Utah—Mattress maker Purple Innovation has come to an agreement with Tempur Sealy about their partnership after Tempur’s proposed acquisition of retailer Mattress Firm. Several intellectual property disputes between the two businesses have also been amicably resolved, Purple said.
The acquisition is currently going through regulatory approval, and if the FTC does not object to the acquisition, Tempur Sealy has agreed that Purple will retain its current relationship with Mattress Firm for at least 12 months, Purple said. This extends the two-month commitment that was previously in place.
“Mattress Firm is an important and respected partner,” said Purple CEO Rob DeMartini. “We believe our Purple brand and products bring a high number of unique consumers into Mattress Firm stores. We appreciate working on an even playing field today and want to continue to work collaboratively with Mattress Firm. This agreement will give us time to explore expansion opportunities.”
Specific terms of the IP agreement remain confidential, but Purple will retain control and ownership over its brand, patented mattress technology, and the Hyper-Elastic Polymer and GelFlex Grid marks. “That the parties were able to resolve their differences is a strong signal to the marketplace that Purple is an innovator in hybrid mattress technology and deter future threats to Purple’s business,” Purple said.
This is now the sixth post-closing supply agreement Tempur Sealy has made with other mattress manufacturers. “We have engaged a critical mass of suppliers to provide a robust and diverse offering of high-quality bedding products to Mattress Firm customers,” said Scott Thompson, chairman and CEO at Tempur Sealy. “These developments are consistent with our plan and expectation that Mattress Firm will continue as a multi-branded retailer post-closing.”
Tempur Sealy said it expects the FTC to complete its review of the proposed acquisition by the end of the second quarter. It anticipates the transaction should close in mid-to-late 2024.
