Mattress Firm Buying Sleepy's
01 December 2015 - 9:30AM
Dow Jones News
Mattress Firm Holding Corp., the largest U.S. specialty mattress
retailer, said it would buy second-place Sleepy's for $780 million,
forming a business with about 3,500 stores and more than $3.6
billion in sales over the past 12 months.
Mattress Firm expects the deal will lead to a low single-digit
increase in per-share earnings in the first year after closing, as
well as provide annual savings of about $40 million by the third
year after the deal closes.
The company said it plans to continue to operate under both the
Mattress Firm and Sleepy's brands in the near term.
Private-equity firm Calera Capital had invested in Sleepy's in
2012 in a recapitalization that included participation by the
retailer's management.
Mattress Firm has grown through several acquisitions in recent
years, including the 2014 purchase of Sleep Train for about $425
million.
Mattress Firm, which lowered its full-year earnings guidance in
September, said Monday that it posted a strong third quarter, with
net sales rising 50.7% to $699.5 million as same-store sales rose
3.8%.
The company expects to report third-quarter earnings excluding
items of 80 cents to 82 cents a share. Analysts polled by Thomson
Reuters expected 77 cents.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 30, 2015 17:15 ET (22:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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