Bedding maker Tempur Sealy International is to acquire the Sealy brand rights in Japan and certain assets from its former licensee.

The company did not disclose financial details of the deal.

As part of the transaction, certain functions of the former licensee, including sales and marketing, will be integrated into the company’s Japanese subsidiary. In addition, the companies have executed a supply agreement, whereby the former licensee will become a contract manufacturer for certain Sealy branded products in Japan.

“The acquisition of Sealy brand rights in Japan is the first transaction whereby we have regained rights from a Sealy licensee arrangement,” said Tempur Sealy International CEO Mark Sarvary.

“Japan has been an important market for our company for a long time and we are excited at the prospects of further increasing our penetration and market share with a strengthened brand and product offering,” says Sarvary.

Following the acquisition, the company anticipates Japan to be its largest market by sales outside of North America.