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Tempur-Pedic closes on $228.6M Sealy buyout

LEXINGTON, Ky. (AP) -- Mattress maker Tempur-Pedic has closed on its $228.6 million acquisition of rival Sealy Corp. and plans to change its name to Tempur Sealy International Inc.

The deal comes amid increasing competition in the sector, as companies try to win over consumers still stung by the recession. However, with the economy improving and home sales on the rise, demand may soon be on its way up.

Lexington, Ky.-based Tempur-Pedic makes mattresses under its namesake brand, while Sealy of Trinity, N.C., supplies products with the Sealy, Stearns & Foster and Bassett names. The companies put the total value of the deal at about $1.3 billion, which includes debt.

The company will look for stockholders to approve the proposed name change at its annual shareholders meeting in May.

Tempur-Pedic said that its corporate headquarters will be in Lexington. It will continue to trade on the New York Stock Exchange under the "TPX" ticker symbol.

Shares of Tempur-Pedic added 30 cents to $45.95 in morning trading.