New York (Hedgeco.Net) – The world’s largest bedding provider, Tempur Sealy, has acquiesced to pressure from Rehan Jaffer’s hedge fund, to remove Mark Sarvary as the Company’s President and CEO. Tempur Sealy also appointed one of Jaffer’s senior partners, Usman Nabi, to the board as a new independent director, he will also be added to the Compensation Committee.
“I am pleased to join the Tempur Sealy Board, and I look forward to collaborating with the Board and management team to help the Company achieve its full potential.” Nabi said. Prior to joining H Partners in 2006, he was at Perry Capital, the Carlyle Group, and Lazard Freres. Nabi received his A.B. degree from Harvard College and an M.B.A. degree from Stanford University Graduate School of Business.
Jaffer previously worked at Daniel Loeb’s Third Point, a pioneer activist fund. After his time at Third Point, Jaffer briefly joined River Run Partners in 2004, after which he went on to found H Partners. The Tempur Sealy Board of Directors has appointed the current COO to serve as interim CEO of Tempur Sealy, which is worth approximately $5 billion.
H Partners Management is an independent hedge fund firm founded in 2005 based in New York City. H Partners owns an approximate 10 percent stake in Tempur Sealy.
The company agreed to “Form a CEO Search Committee that will comprise Mr. Nabi and three additional independent directors that will include the new, independent director and two existing independent directors. Mr. Nabi will serve as Chairman of the CEO Search Committee. The Board will also engage an executive search firm to assist with a comprehensive search process to identify a permanent CEO.
“We will continue to strengthen our Board, and we are moving past this matter fully focused on achieving our objectives around the world. The Board and management team would like to thank all of our associates for their commitment and focus throughout this process and as we move forward together to continue our success. We would also like to thank our customers, vendors and partners for their continued support of Tempur Sealy.”
In connection with today’s announcements, Tempur Sealy has entered into a customary standstill agreement with H Partners. The agreement will be filed with the Securities and Exchange Commission on a Form 8-K.
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