In the wake of a bitter shareholders fight last month, Lexington-based Tempur Sealy is seeing a major shakeup at the top with three company leaders ousted last month.
But what does it mean for regular employees and customers? Probably very little, at least in the short run.
"Tempur Sealy is as committed as ever to executing against our long-term vision and realizing the full potential of our great company," said Rick Maynard, Tempur Sealy spokesman, in a statement. "Today we are working diligently to continue the momentum underway as we move into our next phase of growth. Our employees around the world are focused on achieving our objectives, as well as providing the bedding products our customers and partners expect from Tempur Sealy."
Usman Nabi of H Partners Management, has been appointed to the Tempur Sealy board as an independent director. Nabi did not respond to a request for comment. H Partners led the campaign, beginning in February, to force out president and CEO Mark Sarvary, chairman P. Andrews McLane and board member Christopher A. Masto.
At the Tempur Sealy annual meeting in Boston in May, this culminated in a majority of shareholders withholding votes to keep them on the board, which triggered their required resignations.
The board voted to accept those resignations and to appoint COO Tim Yaggi as interim CEO and elected Frank A. Doyle chairman of the board.
In addition to a seat on the board, Nabi is also chairman of the CEO search committee and has a seat on the compensation committee. The CEO search committee will include a new independent director recommended by H Partners.
In other words, H Partners is now in the driver's seat.
During the campaign, H Partners argued that change was needed to deliver increased shareholder value, despite a 500 percent increase in price since Sarvary joined the company in 2008.
In a February release, Nabi said: "Tempur Sealy possesses all the components of a successful company — industry-leading products and technologies, highly recognizable brands, and dedicated employees. We strongly believe Tempur Sealy can achieve its full potential under a new CEO and a reconstituted board."
Besides new management, H Partners did not outline other specific changes, which could indicate that little will be different for rank-and-file. No layoffs are anticipated other than what might occur due to normal market fluctuations.
Nabi said last month after the vote that he was pleased to join the board.
"I look forward to collaborating with the board and management team to help the company achieve its full potential."
Otherwise, the company indicated few changes. New chairman Doyle praised Yaggi, who has been with the company since February 2013, as a "strong leader" and predicted a smooth transition for all stakeholders.
Tempur Sealy, which has its company headquarters in Lexington, is the largest bedding company in the world, with brands Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster.
At the release of fourth quarter results in February, then-CEO Mark Sarvary said that 2014 had been a strong sales year, driven by new products and effective marketing.
"We generated operating cash flow of $225 million and significantly reduced our total debt," Sarvary said.
For 2015, the company predicted net sales in the range of $3.05 billion to $3.15 billion, with adjusted earnings per share of $2.70 to $3.10, and sales growth of 2 to 5 percent.
In late April, when first quarter results were released, the company increased that prediction to $3.1 billion to $3.175 billion, with earnings of $2.80 to $3.15 per share.
Tempur Sealy is expected to report second quarter results in late July.