From Home Furnishing Business
Mattress Firm to Acquire Mattress King, BedMart
The $35 million acquisition will add 75 store fronts to Mattress Firm's company-owned store network.
The deal is set to close by the end of the second fiscal quarter of 2014, and will be funded by cash reserves and borrowings, along with $3.5 million seller note payable in quarterly installments over two year.
“We are excited to further expand our position in the Denver, Phoenix and Tucson markets,” said Steve Stagner, Mattress Firm president and CEO. “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.”