Specialty retailer Mattress Firm Holding will acquire all of the mattress specialty retail assets and operations of Back to Bed, M World Mattress, MCStores and TBE Orlando, which collectively operate Back to Bed, Bedding Experts and Mattress Barn Stores for nearly $60m.
The acquisition will see addition of further 135 mattress specialty retail stores to the Mattress Firm Company-operated store base in both new and existing markets, primarily in the Chicago and Orlando metropolitan areas.
Mattress Firm president and chief executive officer Steve Stagner said: "We are excited to secure a presence in Chicago, a key strategic market for Mattress Firm, with a strong store base in full operation and to further enhance our position as a top player in the Florida markets."
"This acquisition of the Back to Bed and Bedding Experts stores in the Chicago area will allow us to immediately gain scale in that market. The Mattress Barn and Bedding Experts stores in Florida will augment our existing base of quality stores and further establish our recognizable presence in that region.
"As with prior acquisitions, this acquisition demonstrates our continued focus on the relative market share strategy, which continues to build long-term value creation for our shareholders," Stagner added.
Mattress Firm believes that the acquisition is expected to strengthen the company’s presence in Chicago Metropolitan Area and also in its target markets in Florida.
The transaction is expected to occur by the end of the third quarter of 2014 and will be funded by cash reserves and revolver borrowings.