Business

Mattress Firm To Buy Sleepy’s For $780 Million

The merger will give Houston-based Mattress Firm, already the nation’s largest mattress retailer, a dominant position in the Northeast and Mid-Atlantic states.

Listen

To embed this piece of audio in your site, please use this code:

<iframe src="https://embed.hpm.io/129298/129297" style="height: 115px; width: 100%;"></iframe>
X
Outside of Mattress Firm store
Mattress Firm

Houston-based Mattress Firm has announced plans to buy Sleepy's, its top competitor, in a merger valued at $780 million in cash and stock. The deal will give the Houston company full control of Sleepy's parent, HMK Mattress Holdings, based in Hicksville, New York.

Mattress Firm CEO Steve Stagner spoke to investors in a conference call just after the close of business on Monday.

"With Sleepy's, we are joining forces with a specialty retailer with a leading market share position in the Northeast and Mid-Atlantic, operating over 1,050 stores in 17 states and the District of Columbia," Stagner said.

The Houston firm is already the nation's largest specialty mattress retailer. Buying Sleepy's would expand its footprint to 3,500 stores, with annual sales of $3.6 billion.

"We anticipate approximately $40 million of identifiable cost synergies by the third year post-closing," said Alex Weiss, Mattress Firm's chief financial officer.

Mattress Firm's chief operating officer, Adam Blank, will take over as president of Sleepy's operations following the merger. Pending regulatory approval, the deal is expected to close by mid-2016.

Subscribe to Today in Houston

Fill out the form below to subscribe our new daily editorial newsletter from the HPM Newsroom.

* required

Share

Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

More Information