Mattress company Tempur-Pedic is buying rival Sealy for approximately $228.6 million in cash.

Tempur-Pedic International Inc. said Thursday that it will pay $2.20 per Sealy share, which is a 3 percent premium to the company's Wednesday closing price of $2.14.

Tempur-Pedic will also assume or pay back all of Sealy Corp.'s outstanding debt. The companies put the total value of the deal at $1.3 billion.

The buyout is expected to close during 2013's first half.