Largest shareholder of mattress seller Tempur Sealy asks for CEO to be removed

Industries Associated Press

Tempur Sealy's largest shareholder wants the mattress maker to dump CEO Mark Sarvary, saying he is mismanaging the company.

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H Partners Management LLC said in a letter Tuesday that profit margins have declined at Tempur Sealy and its stock has not done as well as competitors' shares in the last three years.

The New York-based investment firm said it has already identified potential CEO replacements, but did not name them. H Partners, which has a 10 percent stake in Tempur Sealy, also wants a seat on the company's board.

A representative for Tempur Sealy did not immediately respond to a request for comment.

The company, based in Lexington, Kentucky, makes mattresses under the Tempur-Pedic, Stearns & Foster and Sealy brand names.

H Partners has also invested in theme park operator Six Flags. The investment firm said it helped Six Flags recruit a new CEO five years ago.

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Shares of Tempur Sealy International Inc. rose 41 cents to $56.03 in late morning trading Tuesday. They have gained about 16 percent in the last 12 months.