Mattress Firm Lays Down $440M Bid for Sleep Train
NEW YORK (The Deal) -- Mattress Firm
Rocklin, Calif.-based Sleep Train operates 310 retail stores spread across six western states, generating $471 million in sales in fiscal 2013. Post deal Mattress Firm said that it would operate 2,000 locations and 70 distribution centers in 40 states, a coast-to-coast retailer with nearly $2 billion in annual sales.
"This unique and transformational opportunity will meaningfully enhance Mattress Firm's position within the specialty retail bedding industry," Mattress Firm CEO Steve Stagner said in a statement. "Not only will our employees and shareholders benefit from this union, but the combination of Mattress Firm's proven relative market share model and strong operating efficiencies with Sleep Train's exceptional ability to deliver robust sales per store is expected to deliver significant synergies and provide our customers with a greater level of selection, service and convenience."
Terms of the deal call for Mattress Firm to pay $425 million in cash and stock for privately-held Sleep Train, subject to working capital and other adjustments, and assume about $15 million in liabilities. Post-deal Mattress Firm said that it would continue to operate Sleep Train's existing brands, with Sleep Train CEO Dale Carlsen expected to become vice chairman of the Mattress Firm board and stay on as president and chief strategy officer.