Top Mattress Companies
UPDATE - Sealy is to be acquired by Tempur-Pedic for $228.6 million. The two entities combined will have sales of around $2.7 - $3 billion which launches Tempur-Pedic into first place in worldwide mattress sales. Both companies are to be run independently but it is clear that there are myriad opportunities to expand sales into retailers that have had one or the other brands but not both. The deal is expected to be finished by mid 2013.
Sealy Corporation is a Delaware Corporation with executives offices in High Point North Carolina ("The furniture capital of the world"). Sealy is the second largest mattress manufacturer in the world and boast an impressive range of product.
Sealy's primary business is in innerspring mattresses. They manage several different brand names:
Sealy (Sealy mattress reviews)
Sealy Posturepedic (Sealy Posturepedic reviews)
Stearns & Foster(Stearns and Foster reviews)
-Several different models that vary by retailer
These brands range in price from around $300 up to as high as $5000. (queen set)
Approximately 2/3 of Sealy's sales come from sets priced at $750 and up. While this price range has offered Sealy impressive growth over the past years it is unknown how the current economic environment will impact growth.
Sealy is also in the business of so-called "speciality bedding", i.e. foam and air. They also manage several different brands of these.
-Ultra Plush Box Top
-Plush Euro Pillowtop
Stearns & Foster
Reflexions (Reflexions reviews)
Carrington Chase (Carrington Chase reviews)
The speciality bedding segment is experiencing enormous growth in the U.S. and abroad. Less than 10% of Sealy's sales are in the "speciality" mattress category.
Sealy employees approximately 4000 people.
Corporate challenges for Sealy:
Competition- Sealy has over 500 competitors in the U.S. Each of these competitors seeks to take market share from Sealy. Sealy's enormous lead in market share gives it a significant leverage with retailers thus giving it protection from great swings in market share.
Debt- Sealy carries a great deal of debt. In the current economic environment this may lead to difficulty with future operations. Customers must continue to meet their obligations to pay Sealy in a timely fashion in order for Sealy to service it's debt.
Material sourcing- Only 1 supplier for visco-elastic components leaves Sealy at rick of supply diruptions and at a price disadvantage.
High price points- While Sealy has a wide range of prices for it's products the sweet spot is in the $750+ arena. The worldwide economy will likely change the way Sealy looks at the way they price their products.
Nearly every mattress Sealy sells comes from one of these locations that Sealy owns or leases:
Richmond and South Gate, California
Colorado Springs and Denver, Colorado
Kansas City, Kansas
St. Paul, Minnesota
Green Island, New York
High Point, North Carolina
Clarion, Delano and Mountain Top, Pennsylvania
Brenham and North Richland Hills, Texas
Saint Narcisse, Quebec
Buenos Aires, Argentina
Carolina, Puerto Rico
Silvano d'Orba, Italy