The Lexington, Kentucky based Tempur-Pedic International Inc. (NYSE:TPX) is acquiring over a century-old competitor Sealy Corporation (NYSE:ZZ), based in Trinity, North Carolina, in around $228.6 million cash deal.
The purchase comes as rivalry has moved up in the mattress industry, with makers boosting their marketing and promotions to assist attract cost-conscious clients into making key purchases.
Tempur-Pedic International, the 20-year old leader in foam mattresses, reported on Thursday that the company would pay $2.20 a Sealy share, which is a 3% over the ending price of company’s Wednesday. Shares price of company was $2.14 on Wednesday.
FactSet data confirms that Sealy presently has around 103.9 million shares outstanding. Shares of the company moved up 5 cents or 2.3% to settle at $2.19 a share.
Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Sealy Corporation (NYSE:ZZ) fell -0.46% to settle at $2.18, Radio Leggett & Platt, Inc. (NYSE:LEG) moved up +1.13% to end at $25.05 while Select Comfort Corp. (NASDAQ:SCSS) jumped +0.96% to finish at $31.53 on Friday.
Tempur-Pedic International Inc.’s (NYSE:TPX) last session’s volume of 3.40 million shares was surprisingly higher than its average volume of 1.68 million shares. The stock after opening at $30.11 hit high price of $30.39 and then closed at $29.89 by scoring -2.45%.
The liquidity measure in recent quarter results of the company was recorded 2.68 as current ratio. The Company had total cash of $134.20 million at hand and a book value per share as -$0.20 in the most recent quarter.
The stock’s price volatility was 6.65 % for a week and 4.59% for a month as well as price volatility’s Average True Range for 14 days was 1.75 and its beta remained at 2.01.
TPX generated revenue of $1.46 billion in the previous twelve months and earned $203.61 million. The Company showed a positive 13.91% in the net profit margin as well as in its operating margin which remained at 21.59%. Company’s annual sales growth for the past five years was 8.45%.
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