Mattress industry adapts to high-speed M&A activity

The mattress industry has been experiencing a wave of mergers and acquisitions in recent years, with major players consolidating their positions in the market. While this trend can lead to increased efficiency and broader market reach, there are concerns about reduced competition and potential negative consequences for consumers. The home furnishings industry, including the mattress sector, is evolving rapidly due to heightened merger and acquisition activities.

One of the most prominent deals in the mattress industry was Tempur Sealy International’s acquisition of Mattress Firm for $5 billion. This acquisition, initially announced in May 2023, only recently closed after a seven-month court battle with the Federal Trade Commission. However, this is just one of many deals reshaping the landscape of the bedding business.

Since 2020, there have been approximately 25 mergers and acquisitions in the bedding category. These include Purple Innovation’s acquisition of Intellibed, Corsicana’s purchase of Symbol Mattress, and Ashley’s acquisition of Resident Home. More recently, 3Z Brands extended its reach by acquiring Southerland, adding to its existing portfolio which includes Bear, Nolah, Leesa, Helix, and Brooklyn Bedding.

Ashley also acquired Resident Home last year while Carpenter Co. expanded its holdings by acquiring Casper, NCFI, and Belgium-based Recticel. Similarly, Sleep Country Canada acquired Casper’s Canadian operations before being privatized by Fairfax Financial. Other notable mergers include Bedding Industries of America’s merger with Saatva, further solidifying the trend of consolidation in the bedding industry.

The pace of mergers and acquisitions in the mattress industry is unprecedented, leading to significant changes in the competitive landscape. Larger companies are growing even larger, while smaller players are banding together to stay relevant in the market. Proponents of consolidation cite economies of scale, cost savings, and enhanced innovation as benefits of these strategic moves. However, opponents argue that reduced competition could lead to higher prices, fewer choices for consumers, and potential job losses.

Executives in the industry view consolidation as a natural progression of business. They see mergers and acquisitions as an opportunity for innovation and growth. Companies like Purple, Ashley, and King Koil emphasize the importance of staying agile and innovative in the face of industry consolidation. While the ongoing consolidation presents challenges for some companies, such as Spring Air International and Paramount Sleep Co., others like Shifman Mattresses see it as an opportunity to differentiate themselves and capture new market share.

Innovation and creativity remain critical as the mattress industry navigates this period of intense consolidation. Smaller companies are leveraging their agility and creativity to stay competitive amidst the dominance of larger players in the market. While consolidation may bring certain advantages, it also poses risks that could impact competition, consumer choices, and overall industry innovation. As the bedding sector continues to evolve, companies must adapt to the changing landscape to thrive in this era of M&A “hyper-overdrive.”