Mattress Firm acquiring 35-store Mattress X-Press chain in Ga., Fla.
Larry Thomas -- Furniture Today, September 7, 2012
HOUSTON — Rapidly growing Mattress Firm announced its second major acquisition of the year by agreeing to buy Florida-based Mattress X-Press for $15.8 million.
Mattress Firm said the 35 Mattress X-Press stores in Georgia and South Florida would be converted to Mattress Firm locations within one month after the deal is closed.
Steve Stagner, Mattress Firm's president and CEO, said the acquisition "further fortifies our market-leading position in South Florida."
"The addition of the high-performing Mattress X-Press stores complements our earlier acquisition of Mattress Giant stores in the same markets," he said. "Combining these recently acquired stores with the company's existing operations in South Florida and Georgia results in an increasingly strong presence in these markets, which we believe will lead to increased sales and profits, and most importantly, drive long-term value for our shareholders."
In May, Mattress Firm acquired about 180 Mattress Giant stores in Florida and Texas, which boosted its company-owned store count to 957 as of July 31.
Stagner said the company expects to close the Mattress X-Press acquisition by Oct. 30, which is the end of the retailer's third fiscal quarter.
Stagner said the Mattress X-Press stores have roughly the same average sales per store as Mattress Firm stores nationwide. He said the stores should add $7 million to $9 million to the company's sales during the second half of the fiscal year.