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Tempur Sealy buying Sealy brand rights in Japan

LEXINGTON, Ky. (AP) -- Tempur Sealy International is buying the Sealy brand rights in Japan from a former licensee, in addition to some of its assets.

Neither the terms nor the name of the licensee were disclosed Tuesday.

"Japan has been an important market for our company for a long time and we are excited at the prospects of further increasing our penetration and market share with a strengthened brand and product offering," said CEO Mark Sarvary.

Some functions of the former licensee — such as sales and marketing — will be integrated into the company's Japanese subsidiary. A supply agreement is also in place that provides for the former licensee to serve as a contract manufacturer for certain Sealy branded products in Japan.

Chief Financial Officer Dale Williams said that the company anticipates Japan will soon become its biggest market outside North America.

The acquisition, expected to close in the company's third quarter, is expected to be break-even or modestly add to Tempur Sealy's 2014 earnings and add to earnings in the future.

Tempur Sealy International Inc., based in Lexington, Ky., makes mattresses, pillows and other products.