Judge Rejects FTC’s Bid to Block Tempur Sealy’s $4B Purchase of Mattress Firm

Antitrust | U.S. District Court of the Southern District of Texas

Following a two-week preliminary injunction hearing in the U.S. District Court for the Southern District of Texas, Judge Charles Eskridge denied the FTC’s bid to block Tempur Sealy International’s $4 billion acquisition of Mattress Firm, ruling that the agency failed to demonstrate a likelihood of anticompetitive harm. The FTC argued that the merger would reduce competition and limit consumer choice in the mattress market, particularly in the “premium” segment. The defense showed that the FTC’s market definition overstated competitive risk, that the predicted foreclosure scenarios were unsupported by real-world distribution dynamics, and that the merger was likely to generate efficiencies and consumer benefits.

Throughout the hearing, DOAR played a key role in helping the defense communicate complex economic and evidentiary issues with clarity and precision. DOAR’s graphics consultants and multimedia designers worked closely with the legal team to develop intuitive visual explanations of market structure, distribution channels, and the economic modeling underpinning the competitive analysis. DOAR also supported the trial team with evidence presentation, ensuring that data-heavy exhibits, demonstratives, and testimony were delivered seamlessly and in a manner that supported the defense narrative. Together, these efforts helped the Court understand the competitive realities of the mattress industry and reinforced the strength of Tempur Sealy and Mattress Firm’s arguments, contributing to the decisive victory against the FTC’s challenge.

Clarifying Market Reality and Undermining the FTC’s Narrative

The demonstratives developed by DOAR helped the defense show that the FTC’s claims of anticompetitive harm were unsupported by market data and internal evidence. The visuals established that the “premium” mattress segment represents only a small portion of overall sales, limiting any possible foreclosure effect, and revealed that the FTC’s definition of “premium” was inconsistent and arbitrary across brands and price points. Additional graphics highlighted contradictions in Serta Simmons Bedding’s (SSB) communications and actions, using contemporaneous notes and a timeline to show that the company’s own projections anticipated growth under the merger. Together, these visuals effectively challenged the FTC’s assumptions, reinforced the economic data supporting the defense, and helped the court conclude that the merger would not harm competition.