(TRINITY) -- Sealy Corp. reported a third quarter net loss of $197,000. This is down from net income of $6.6 million during the same period of the prior year. The report came on the same day that Tempur-Pedic International Inc. announced that it had reached an agreement to acquire Sealy in a deal valued at about $1.3 billion.

Sealy's quarterly loss came in spite of recording an increase of $31.4 million in net sales.  Third quarter net sales came in at $365.4 million. 

In commenting on the its pending deal to acquire Sealy, Tempur-Pedic Chief Executive Officer Mark Sarvary said this will bring together two companies with globally recognized brands. "Tempur-Pedic and Sealy together will have products for almost every consumer preference and price point, distribution through all key channels, in-house expertise on most key bedding technologies, and a world-class research and development team," said Sarvary.  "In addition, our global footprint will span over 80 countries. The shared know-how and improved efficiencies of the combined company will result in tremendous value for our consumers, retailers and shareholders."

The takeover of Sealy by Tempur-Pedic is expected to be completed early next year.