Mattress Firm Holding, specialty retailer of mattresses and related products and accessories in US, has inked a deal to acquire all of the outstanding equity interests in The Sleep Train, a West Coast based bedding specialty retailer, for an aggregate purchase price of $425m.
Mattress Firm, as further consideration, has agreed to assume certain additional liabilities totaling approximately $15m.
The closing of the acquisition, which is subject to capital and other customary adjustments, is expected to occur by the end of the fourth fiscal quarter of 2014.
Upon closing the deal, Mattress Firm plans to continue to operate under both the Mattress Firm and Sleep Train’s family of brands and will maintain a West Coast corporate headquarters near Sacramento, California.
Mattress Firm’s president and chief executive officer Steve Stagner said: "This unique and transformational opportunity will meaningfully enhance Mattress Firm’s position within the specialty retail bedding industry.
"The acquisition of Sleep Train will establish Mattress Firm as the first border to border, coast to coast multi-brand mattress specialty retailer in the United States, with pro forma sales approaching $2 billion a year. It allows us to share best practices and integrate two industry leading management teams, positioning Mattress Firm for accelerated growth. Just as importantly, these two companies are ideal partners, aligned on our passion for culture and emphasis on core values."
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By GlobalDataSleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii.