Mattress Firm to acquire 180 Mattress Giant stores in Florida, Texas
Meredith Schwartz -- Furniture Today, April 10, 2012
HOUSTON - Bedding retailer Mattress Firm announced Tuesday it has agreed buy all the remaining equity interests of Mattress Giant in a deal valued at approximately $47 million.
Mattress Firm, which bought 55 Mattress Giant stores last year, said the latest deal involves about 180 stores in Florida and Texas, its two largest markets. It will give the Top 100 retailer more than 900 stores.
With the newly acquired stores and about 100 new stores it expects to open, Mattress Firm projects it will end its current fiscal year on Jan. 29, 2013, with more than 1,000 stores and revenues of just over $1 billion. It had sales of $703.9 million in the fiscal year that ended Jan. 31.
The company said it expects the sale to close before its second fiscal quarter ends July 31. Shortly after the closing, the Mattress Giant stores will be re-branded as Mattress Firm, and all stores will be merchandized with Mattress Firm's product offerings.
"We are extremely excited about the pending acquisition of Mattress Giant and the further advancement of our relative market share in several of our largest markets," said Steve Stagner, Mattress Firm's CEO. "We have a consistent track record of supplementing our organic growth with opportunistic acquisitions. By acquiring these stores, which historically have represented the best performing locations in Mattress Giant's system, we immediately strengthen our ability to capture additional sales and better serve the consumer."
Last fall, Mattress Giant sold 55 stores in Georgia, Illinois, Missouri and Minnesota to Mattress Firm, and also sold 67 stores in New England to Top 100 retailer Sleepy's.
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