MEDINA — The city’s Sealy Co. mattress plant will be getting a new sign outside, but little is expected to change inside as a result of the merger with rival Tempur-Pedic.
“It doesn’t affect employees,” said Lisa Nowak, director of manufacturing at the plant, 1070 Lake Road, which employs 171 workers who make mattresses and box springs.
Tempur-Pedic completed its acquisition of Sealy earlier this week and plans to change its name to Tempur Sealy International Inc.
“We’re very excited about the combining of the two companies,” Nowak said.
Lexington, Ky.-based Tempur-Pedic makes mattresses under its namesake brand, while Sealy, headquartered in Trinity, N.C., supplies products with the Sealy, Stearns & Foster and Bassett names.
The company still will sell mattresses under the Sealy brand.
Tempur-Pedic will look for stockholders to approve the proposed name change at its annual shareholders meeting in May.
Under the deal, Tempur-Pedic will take over ownership of Sealy for $2.20 per share and also take on about $750 million in Sealy’s debt, making the total acquisition package worth about $1.3 billion.
Tempur-Pedic said its corporate headquarters will remain in Lexington. It will continue to trade on the New York Stock Exchange under the “TPX” ticker symbol.
Shares of Tempur-Pedic added 30 cents to $45.95 in morning trading.
The merger of two of the world’s largest bedding providers follows approval of the acquisition this month by the Federal Trade Commission.
The deal was announced last September.
Tempur-Pedic said Monday it expects annual cost savings in excess of $40 million by the third year through purchasing, supply chain and increased efficiencies.
“We are pleased to announce the completion of our acquisition of Sealy and are very excited about our future as Tempur Sealy International,” said Mark Sarvary, Tempur-Pedic’s CEO.
“We remain confident that our shared know-how and expected efficiencies will result in tremendous value. Our focus now is on ensuring that our integration process remains on track and is as seamless as possible for all of our employees, customers and other stakeholders.”