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Feb 17 (Reuters) - Activist investor H Partners Management LLC said it is seeking the immediate ouster of Tempur Sealy International Inc Chief Executive Mark Sarvary, citing concerns about the bedding company's missed financial forecasts and stock performance.
The hedge fund, Tempur Sealy's largest investor with a 9.97 percent stake, also wants a reshuffling of the company's board as it says the current board lacks "a shareholder-focused mindset".
The Wall Street Journal first reported the news on Monday.
Tempur Sealy has rebuffed the fund's earlier attempts to secure a seat on the mattress maker's board, H Partners said in a statement on Tuesday.
H Partners, which has held shares in Tempur Sealy since 2012, also revealed that it was in advanced talks with potential CEO candidates.
"We are disappointed that H Partners has chosen a public forum to advance its individual agenda," Tempur Sealy said in an e-mailed statement, adding that the activist investor had raised its concerns over Sarvary's performance and the board's composition only within the past 10 days.
Sarvary has been the company's chief executive since August 2008.
Tempur Sealy was formed in 2012, when Tempur-Pedic International bought rival Sealy Corp for about $242 million and took on its debt of about $750 million. (reut.rs/1FVp273)
H Partners, which had a stake in Sealy Corp, targeted private-equity firm KKR & Co's management of the company before the merger with Tempur-Pedic International Inc.
The bedding company's sales have more than tripled to about $3 billion in the past seven years, while its stock has risen nearly 500 percent since August 2008.
Earlier this month, the company forecast full-year profit and revenue that missed the average analyst estimate.
Tempur Sealy's shares closed at $55.62 on the New York Stock Exchange on Friday. (Reporting by Supriya Kurane and Ramkumar Iyer in Bengaluru; Editing by Gopakumar Warrier and Simon Jennings)