Mattress Firm expands company store base
Houston -- Mattress Firm Holding Corp. has entered into an agreement to acquire the outstanding equity interests of Sleep Experts Partners L.P., which operates Sleep Experts retail stores in Texas. In addition, Mattress Firm completed the acquisition of substantially all of the assets and operations of Yotes, Inc., which operated stores under the Mattress Firm brand in Colorado and Kansas, as well as the Virginia retail operations of Southern Max LLC.
Both companies were Mattress Firm franchisees and Southern Max LLC will continue its franchised operations in Tennessee. Collectively, these accretive acquisitions will add approximately 93 specialty retail stores to the Mattress Firm company-operated store base, of which approximately 56 stores are located in Texas with the remainder in Colorado, Kansas, and Virginia. The aggregate purchase price for these acquisitions is approximately $80.5 million, subject, in each case, to customary adjustments.
"These acquisitions will further fortify our market-leading position in key growth markets by expanding our presence in prime areas of the country,” said Steve Stagner, president and CEO of Mattress Firm. “We believe that the addition of an impressive number of high performing stores at the same time also provides the company with the opportunity to further enhance the operating performance and cash flow of these stores at an accelerated pace as we integrate them onto our efficient corporate operating platform.”
The closing of the Sleep Experts acquisition is expected to occur in the first fiscal quarter of 2014, subject to the prior satisfaction of customary closing conditions.