Benzinga | Aug 20, 2020 06:43AM EDT

Tempur Sealy Announces Third New Manufacturing Facility

LEXINGTON, Ky., Aug. 20, 2020 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE:TPX, &quot, , Company&quot, , or &quot, , Tempur Sealy&quot, , ))))) announced plans today to open its 30th North American manufacturing facility. This newest facility is expected to open on the West Coast in the first quarter of 2021 and result in three new manufacturing facilities opening within a six-month period.

Tempur SealyChairman and CEOScott Thompson commented, "The strong demand for bedding, and our products specifically, has continued into the third quarter and we are optimistic about the fundamental trajectory of the business for the foreseeable future. We are facing capacity constraints on U.S. Sealy and Sherwood products that are limiting our ability to meet our customer demand. Sealy is the number one mattress manufacturer in the U.S. based on volume1and is experiencing double digit growth, so this opportunity to open a new facility in the western region of the U.S. is well-timed.

"I should also point out that Tempur-Pedic is currently growing faster than Sealy in the U.S. Our U.S. Tempur-Pedic products are not capacity constrained, as our Tempur-Pedic manufacturing facilities can produce at levels consistent with current market demand,"said Thompson.

Thompson continued, "Our team is always evaluating opportunities to improve customer service and optimize our operations. We are committed to deliver high-quality products across our broad distribution network, and believe that this facility, in conjunction with our previously announced expansions in Dallas, TX and the northeast, will support the elevated demand. Our previously disclosed 2020 capital expenditures contemplated the new facilities, which will be funded from operating cash flow."