UPDATE: Wedbush Maintains Tempur-Pedic International at Neutral Following Sealy Deal
Wedbush commented, "The acquisition should be accretive during the first year, and the company expects annual operating cost savings of $40 million by the third year. In addition to operational cost savings (primarily through purchasing and supply chain), Tempur-Pedic has been able to refinance Sealy's debt obligations for a much lower interest rate, and it expects to reduce the company's combined leverage to an optimal level within four to five years. … Many questions remain as to what level of integration the combined company will pursue, and how this may affect future financial results."
Tempur-Pedic International closed at $30.33 on Thursday.
Latest Ratings for TPX
|Sep 2016||UBS||Initiates Coverage on||Neutral|
|Sep 2016||Longbow Research||Downgrades||Buy||Neutral|
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