Tempur Sealy International (NYSE:TPX) announced on Monday its intention to sell more than 100 retail locations in a move to gain regulatory approval for its $4 billion merger with Mattress Firm.
The proposed deal, which would create a combined network of approximately 3,000 stores worldwide, faced opposition from the U.S. Federal Trade Commission (FTC) over concerns related to potential price increases and job losses.
The FTC filed a lawsuit in July to block the merger.
In response, Tempur Sealy plans to sell 73 Mattress Firm locations to Mattress Warehouse, an independent bedding specialty retailer.
Additionally, the company will divest 103 retail locations operating under its Sleep Outfitters brand, along with seven distribution centers.
The planned divestitures are contingent on the completion of Tempur Sealy's merger with Mattress Firm.
Despite the sale, Tempur Sealy confirmed it will continue to supply its products to the affected Mattress Firm and Sleep Outfitters stores.
A hearing regarding the FTC's litigation is set for November 12 and is expected to last two weeks.
In a separate announcement, Tempur Sealy disclosed it has secured a $1.6 billion term loan to fund the cash-and-stock acquisition of Mattress Firm, which operates over 2,300 stores across the U.S.