Canada-based mattress retailer Sleep Country Canada Holdings has entered into an agreement to purchase online mattress brand Endy for approximately C$89m ($66.98m).
As part of the deal, Sleep Country has agreed to pay C$88.7m for the Canadian e-commerce brand including C$63.7m ($47.94m) in cash at closing, as well as up to C$25m ($18.81m) in cash in early 2021, subject to certain growth and profitability achievements in 2020.
Established in 2015, Endy offers a range of mattress brands including Endy Mattress, The Endy Pillow, The Endy Sheets, and The Endy Mattress Protector through its online platform.
In August this year, the company secured an investment from an external investor, former Toronto Blue Jays star Jose Bautista.
Endy co-founder and chairman Rajen Ruparell said: “We launched Endy as a disruptor in the Canadian e-commerce space three years ago, and this announcement today is a testament to the incredible dedication of the entire Endy team.
“This acquisition will allow Endy to continue to grow rapidly and exceed customer expectations in a rapidly evolving retail climate while remaining separate.”
The deal will enhance Sleep Country’s existing e-commerce offerings as well as strengthen its national store footprint and sleep product portfolio.
Following the completion of the transaction, Sleep Country and Endy will operate as separate entities.
A board consisting of senior management of both the companies will provide general oversight of the Endy business. Ruparell will act as the chair of this board.
Sleep Country currently operates a network of 264 stores and 16 distribution centres across Canada. It also offers white glove home delivery service.