|A Tempur-Pedic Mattress, price ranging from £1,099|
High-end mattress manufactures Tempur-pedic have taken a turn from their usual foam mattress making to delve into new waters, buying out their competitors Sealy Posturepedic.
Tempur, known for their high-priced memory foam mattresses, have had a tricky few months, with the company's market value dropping by half, due to stiff competition from cheaper manufacturers.
With this move, Tempur are hoping to move into the more accessible market- on Tempur-pedic's redical decision, Bradley Thomas of KeyBanc Capital Markets says:
"After many years of dominating the foam niche of the bedding category, the world has changed for Tempur-Pedic; (with this deal) will firmly become a part of the normal mattress world, and will no longer be a niche player."
And it's not only Tempur-pedic that will benefit from this buy- Industry consultant Barrie Brown says that Sealy will also reap the benefits from the new market.
"Now with Sealy they are going to have access to consumers that buy at $1,000 and $1,500, so it really broadens the market for them."
With Tempur-pedic's traditional known and proven methods, along with Sealy's innovation and affordability, we certainly expect to see great things from the new partners!
Labels: Manufacturers, Sealy