Mattress maker Serta Simmons Bedding LLC will merge with Tuft & Needle as the two companies look to take on stiff competition from cheaper Chinese products in the U.S. market.
Serta said the deal will help expand its reach in the direct-to-consumer industry and boost its online presence.
Tuft & Needle’s founders, who started the company in 2012, will report to Serta Chief Executive Michael Traub, the companies said.
The terms of the deal were not disclosed, but the companies said they expected to close the deal within the next 60 days.
Serta and Tuft’s portfolio will remain independent of each other after the closing of the deal, the companies said.
Source: Reuters.com