Mattress Firm acquiring 44 stores in two deals
December 5, 2013-- Furniture Today,
HOUSTON — Top 100 retailer Mattress Firm said it has acquired a five-store bedding specialty chain in Nebraska and has agreed to buy a Wisconsin-based franchisee that operates 39 stores.
The acquisitions, which were announced Wednesday in the company's quarterly earnings release, will boost Mattress Firm's company-owned store count to about 1,300.
The company said it completed the acquisition of the five-store Mattress People chain on Nov. 13 for a cash price of approximately $1.8 million, subject to customary post-closing adjustments.
Mattress People is based in Omaha, Neb., and operates four stores in Nebraska and one in Council Bluffs, Iowa. The acquired stores will be rebranded as Mattress Firm.
The company also said it has agreed to acquire Mattress Firm franchisee Perfect Mattress of Wisconsin LLC for about $6.3 million. The franchisee has 39 stores in Wisconsin and Illinois.
Mattress Firms said it expects to close the deal by the end of its fiscal year on Jan. 28. The purchase will be funded by cash reserves and a $2 million seller note that is payable in quarterly installments over one year.