Mergers and Acquisitions: Tempur-Pedic Buys Sealy, OCZ Pops On Seagate Potential

Tempur-Pedic International, Inc. (NYSE:TPX) will acquire its peer mattress retailer Sealy Corporation (NYSE:ZZ) for $2.20 per share, or $229 million. Through the terms, the buyer will either assume or repay the entirety of Sealy’s outstanding convertible and non-convertible debt which takes the total transaction amount to $1.3 billion in a transaction that should close the first half of next year. Analysts are not surprised at the acquisition as Tempur-Pedic wants brand protection and possesses a large amount of output capacity. However, a possible worry is that the deal might get the attention of the Justice Department’s anti-trust division.

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Shares of OCZ Technology Group Inc. (NASDAQ:OCZ) pop following a story in The Register that the company did indeed hold buyout talks with Seagate Technology (NASDAQ:STX) during the summer. A deal was “almost done on the financial side”, but then the talks fell through, due to OCZ Chief Executive Ryan Peterson wanting a seat on Seagate’s board. Peterson’s stepping down last week is thought to have been his role in the matter.

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