Bloomberg News

Shares of Tempur Sealy (TPX - Get Report)  were up 6% in trading Tuesday after the mattress maker announced it was broadening its distribution agreements with three of its partners, two of which are in the U.S..

The company will expand the distribution of its bedding products through expanded partnerships with Mattress Firm and Big Lots (BIG - Get Report) in the U.S. and Beter Bed Holding in Europe.

It expects the net sales from these three supply agreements to be more than $400 million on an annual run rate basis once its product launches are complete. It expects annual adjusted EBITDA to benefit between $75 million and $100 million starting in 2020. 

"The expansion of our distribution is a testament to the strength of our brands, coupled with reliable manufacturing and quality service. Our premium brands and innovative products have allowed us to service a growing customer base," said CEO Scott Thompson. "We expect these newly reported transactions will have a positive impact on expanding our brands' share of voice in the market and in leveraging our cost structure. Aligning with quality third-party retailers in a win-win structure is consistent with our distribution strategy."