Tempur Sealy International Inc (TPX  ) announced plans on Tuesday to acquire Mattress Firm in a cash-and-stock deal valued at approximately $4 billion.

The Details: Mattress Firm, part-owned by Steinhoff International Holdings NV (STHHF  ), operates more than 2,300 brick-and-mortar store locations in the U.S., making it one of the largest bedding retailers in the country.

The acquisition will give the combined entity a global footprint of around 3,000 stores.

The deal could have implications for other players in the mattress industry, such as Sleep Number Corp (SNBR  ) and Purple Innovation Inc (PRPL  ).

The consolidation of two major industry players could prompt competitors to consider possible mergers or acquisitions to maintain their market share and competitiveness.

The deal is not expected to close until the second half of 2024, according to a Reuters report, as analysts anticipate a lengthy review by regulators.

Tempur Sealy received a request for additional information and documentary material from the Federal Trade Commission (FTC). In October, the companies also submitted to regulators a receipt of clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1976, given the uncertain regulatory environment.

The acquisition could ultimately prove beneficial for both companies, as it will allow Tempur Sealy to leverage Mattress Firm's extensive retail network while providing the latter with access to Tempur Sealy's product development and manufacturing capabilities.

The combined entity will have a strong presence in the market, with approximately 3,000 retail stores, 30 e-commerce platforms, 71 manufacturing facilities, and four R&D facilities worldwide.