Mattress Firm Deals for Additional Stores
HOUSTON-Mattress Firm has made three deals that will add about 93 stores to its store base.
The company has entered into an agreement to acquire the outstanding equity interests of Sleep Experts Partners, which operates Sleep Experts stores in Texas. It has also completed the acquisition of Yotes, which operates stores under the Mattress Firm brand in Colorado and Kansas. It has also closed on a purchase of the Virginia retail operations of Southern Max.
Both of the latter transactions involved Mattress Firm franchisees, and Southern Max will continue to operate its franchised stores in Tennessee. Altogether, the three acquisitions cost Mattress Firm about $80.5 million, subject in each case to customary adjustments, according to a statement from the specialty retailer.
Fifty-six of the acquired stores are in Texas, and the remainder are in Colorado, Kansas and Virginia. Steve Stagner, Mattress Firm's president and CEO, said the three deals will further bolster the company's position by expanding its presence in prime markets. "We believe that the addition of an impressive number of high-performing stores at the same time also provides the company with the opportunity to further enhance the operating performance and cash flow of these stores at an accelerated pace as we integrate them onto our efficient corporate operating platform," Stagner said.
The Sleep Experts acquisition is expected to close during the first fiscal quarter of 2014.