Even if the name Somnigroup doesn’t ring a bell, you’ll no doubt recognize some of the parent corporation’s businesses: Tempur-Pedic, Sealy, Stearns & Foster, Mattress Firm, and Leggett & Platt, to name just a few.

With annual revenues of more than $11 billion and a vertically integrated business model, from components and finished product to retail, Somnigroup is a juggernaut in the bedding business, the likes of which the industry has never encountered. The consequences for the rest of the mattress sector are only just beginning to play out.

Somnigroup—the name comes from the Latin word for sleep—is the largest bedding player in the world, with a market cap of about $13.5 billion. It operates in 100 countries, with more than 70 manufacturing sites and 2,800 stores. By comparison, the closest competitor in the U.S. market is Serta Simmons; and while it’s privately owned, it’s estimated that its sales are $2 billion tops.

Somnigroup began life as Tempur-Pedic, a company that eventually broke through the dominating Big 3 S’s—Serta, Sealy and Simmons—with products made from memory foam, a by-product of the U.S. space program. In 2013, Tempur bought Sealy and its flagship Posturepedic name, as well as its subsidiary, Stearns & Foster. The company rebranded as Tempur Sealy International and continued to make smaller acquisitions along the way. Its size and scope shifted dramatically last year when it bought Mattress Firm, the biggest specialty retailer in the country, in a deal valued at about $5 billion. That’s when the Somnigroup name came along.

And the brand wasn’t finished yet. In a transaction that just closed in August, Somnigroup acquired Leggett & Platt—a company best known for making components of mattresses and bed frames—for about $2.3 billion. This gave the parent company that complete vertical integration, which is unprecedented in the bedding business.

The move raises any number of questions about how this behemoth will impact competing firms. Will Leggett & Platt provide better prices and terms to its sister mattress brands than to others it sells to? Will Mattress Firm get first crack at the newest Tempur and Sealy products, and at special prices not readily available to competing retailers? And how will those competing retailers counter-merchandise this arrangement—perhaps turning to other manufacturing brands where they might find a more level playing field?

Somnigroup says all its divisions will operate independently, and that it is meeting all the commitments it made in response to the Federal Trade Commission, which initially blocked the Mattress Firm deal. For instance, Mattress Firm is to reserve at least 25 percent of its total floor space for third-party, non–Tempur Sealy brands for five years. Three quarters of that space must go toward mattresses priced above $1,500 to protect rival premium manufacturers.

The company was also required to sell 73 Mattress Firm locations as well as the entire 103-store Sleep Outfitters subsidiary, which Mattress Warehouse now owns.

Still, competitors on both the supplier and retail sides have publicly and privately raised concerns about how this combined entity will impact their businesses. Jerry Thomas, director of stores for BlvdHome, a Utah-based multistore furniture retailer that sells various mattress brands, told Furniture Today after the Mattress Firm deal closed last year that there could be problems. “If [Tempur Sealy] gives [Mattress Firm] special product that no one else has, this will cause everyone else problems, and I think they will eventually,” said Thomas. Ironically, he added that if Mattress Firm gets more aggressive in promoting, it will have a halo effect on consumer awareness for his own company. “When Firm has done a lot of advertising in the past, it has brought up my business as well.”

Other industry professionals are also looking on the bright side. In the same article, Nick Bates, president and CEO of Spring Air International—a Massachusetts-based mattress manufacturer with 13 U.S. factories and 19 international licensees—said the merger could be good for his business. “If [retailers] are looking for alternatives, we can help them win against whatever Mattress Firm has on the floor.”

All of these concerns were voiced before the Leggett & Platt deal went through, which might further provide Somnigroup with an advantage. Still, that deal too sailed through the business-friendly Trump regulatory agencies without any changes.

But for Somnigroup, the advantages in its new structure are yet to be lauded by Wall Street. This week its share price still showed about a 25 percent decline year to date. Still, one analyst firm, Raymond James, while calling the Somnigroup integration “messy,” nonetheless rated its stock a “strong buy.” According to the firm, all nine analysts covering the company are recommending buying Somnigroup stock, believing that conditions in the overall bedding market, impacted by the dismal housing situation, will improve.

In the meantime, Somnigroup holds a commanding position in the overall mattress sector—one that could yet cause nightmares for its competitors.

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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.