27 May 2021
Posted in Retail
Sweet Dreams for Tempur Sealy after acquiring beds specialist, says GlobalData
Following the news of Tempur Sealy’s acquisition of the beds retailer Dreams, Matt Walton, Senior Data Analyst at GlobalData, a leading data and analytics company, offers his view:
“The turnaround of Dreams, which went from a pre-pack administration deal in early 2013 to the UK’s leading beds specialist by 2019, is now fully complete following its £340m acquisition by American mattress manufacturer, Tempur Sealy from private equity owner, Sun European Partners.
“A lot of credit for this recovery must go to Dreams’ CEO Mike Louge, for implementing a successful strategy which focused on overhauling store environments, developing its online offer and improving product quality at its Oldbury factory. The takeover could see Dreams becomes the exclusive distributor of Tempur products in the UK, a move which would impact John Lewis, Bensons for Beds, Furniture Village and some independents.
“This acquisition provides Tempur Sealy with a stronger vertically integrated supply chain which will help it achieve greater economies of scale, and help it avoid the levels of disruption which others have seen in the sector following the shortage of foam in Europe at the end of 2020. While Tempur does already operate a select number of its own stores, this acquisition will significantly increase its reach across the country.”