Houston-based sleep shop chain Mattress Firm has entered into an agreement to buy Denver-based Mattress Liquidators Inc., which operates retailers Mattress King in Colorado and BedMart in Arizona, for about $35 million.
The acquisition will add close to 75 stores to Mattress Firm’s store count. The sale is expected to close at the end of Mattress Firm’s second fiscal quarter. It will be funded by cash reserves, revolver borrowings and a $3.5 million seller note payable over two years, a news release stated.
“We are excited to further expand our position in the Denver, Phoenix and Tucson markets,” said Steve Stagner, Mattress Firm president and chief executive officer. “We believe that the acquisition of the Denver stores will allow us to leap into a strong position in that market, building on the foothold established by the acquisition last month of the formerly franchised Mattress Firm stores in Denver. The additional stores in Phoenix and Tucson will supplement the existing base of quality stores that we currently operate in those markets. This acquisition is aligned with our relative market share strategy, which continues to build long-term value creation for our shareholders.”
On April 3, Mattress Firm completed the acquisition of Texas sleep shop chain Sleep Experts. With the Mattress Liquidators acquisition, Mattress Firm will own and operate more than 1,475 retail storefronts in 33 states.
