Maverick mattress e-tailer Tuft & Needle sells out to Serta Simmons
Source: Tuft & Needle
Serta Simmons Bedding (SSB), the very definition of a staid legacy mattress company, announced it has reached a definitive agreement to acquire Tuft & Needle (T&N), one of a group of online sellers that has disrupted the mattress category in recent years.
With brands including Serta, Simmons and Beautyrest, SSB is the largest manufacturer of mattresses in the world. The deal for T&N, which sells mattresses priced between $350 to $750 directly to consumers, will give SSB access to the fast-growing bed-in-a-box category. T&N’s products will now be available for purchase through SSB’s retail partner store network.
"Tuft & Needle is the original disruptor in the direct-to-consumer mattress industry and is a rare example of an economically healthy, fast growing start-up," said Michael Traub, SSB chief executive officer, in a statement. "Combining SSB's nearly 150-year legacy and leadership in product innovation with Tuft & Needle's expertise in delivering a best-in-class consumer experience, this merger will greatly accelerate our growth and innovation in the direct-to-consumer segment, and significantly enhance our e-commerce capabilities across brands. Together we have a clear path to transform the consumer experience at scale as well as the future of the industry."
T&N co-founders JT Marino and Daehee Park will continue to lead the company while also helping to push SSB’s omnichannel efforts.
News of the T&N deal comes a week after reports circulated that SSB was considering an acquisition of Mattress Firm, the largest chain of mattress stores in the U.S. The retailer is reported to be considering bankruptcy and closing stores. An unnamed source told the New York Post that a Mattress Firm bankruptcy could leave SSB with “$100 million in receivables.” It’s unclear if SSB will pursue a deal for Mattress Firm in light of its T&N acquisition.