Mattress Firm to Acquire Sleep Train

by Nate Hunter

Houston — The combined business will operate approximately 2,000 mattress specialty retail stores and 70 distribution centers across 40 states.

Houston — Mattress Firm Holding Corp., the leading specialty retailer of mattresses and related products and accessories in the U.S., has entered into an agreement to acquire all of the outstanding equity interests in The Sleep Train, Inc., the leading West Coast-based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and other customary adjustments.

Sleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net sales of $471 million for the 2013 fiscal year, according to Furniture Today.

The closing of the acquisition is expected to occur by the end of the fourth fiscal quarter of 2014. The transaction has been unanimously approved by the boards of directors of both companies and the trustee of The Sleep Train, Inc. Employee Stock Ownership Plan.

The company 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, Calif.

“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,” says Steve Stagner, Mattress Firm’s president and chief executive officer. “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. 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.”

“We are excited about the numerous opportunities this acquisition will create for our combined 5,000 employees as well as our vendors, business partners and shareholders,” continues Stagner. “Upon closing, Dale Carlsen, the chief executive officer of Sleep Train, will become president and chief strategy officer of the company and will join the Mattress Firm board of directors as vice chairman. Rob Killgore, chief operating officer of Sleep Train, will become co-chief operating officer of the company with current Mattress Firm chief operating officer, Ken Murphy.”

For more information, visit and

To read more on Mattress Firm’s other recent acquisitions, click here.






SOURCE: Mattress Firm



You may also like