The nation’s two largest mattress foam suppliers, one located in Radnor, have reached an $850 million merger deal, writes Michelle Caffreey for Philadelphia Business Journal.

Radnor-based FXI will merge with Red Bank, New Jersey-based Innocar.

The two companies will sell three manufacturing plants to settle a Federal Trade Commission complaint.

Both firms manufacture low-density polyurethane foam for mattresses, furniture and vehicles.

The FTC argued that the combined FXI would be the largest supplier of its kind in the U.S.

Right now, FXI and Innocor compete against each other, benefiting customers. The merger would raise prices and stall innovation, the FTC stated.

To satisfy the FTC, an FXI foam-pouring plant in Washington and two Innocor foam-pouring plants in Indiana and Mississippi will be sold to a competitor, Future Foam in Iowa, which doesn’t have a presence in the regions the FTC is concerned about.

“As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently,” FXI CEO Harold J. Earley said in a statement.

Read more about the merger here.

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