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From Home Furnishing Business

Mattress Firm Completes Acquisition

Bedding retailer Mattress Firm  (NASDAQ: MFRM) has completed its acquisition of Back to Bed, Bedding Experts and Mattress Barn.

The acquisition, announced in August, added about 135 mattress specialty retail stores to the Mattress Firm company-operated store base in both new and existing markets. Back to Bed and Bedding Experts have stores in Illinois, Indiana and Wisconsin; and Bedding Experts and Mattress Barn have stores in Florida.

The aggregate purchase price of about $60 million was funded by cash reserves and revolving borrowings.

Mattress Firm expects to rebrand and transition Back to Bed, Bedding Experts and Mattress Barn stores into Mattress Firm stores and has begun the process of outfitting the newly acquired stores with Mattress Firm's "Comfort by Color" merchandising approach, product offerings, point of sale systems and sales programs.

"Consistent with our core relative market share strategy, this acquisition allows us to secure a strong presence and immediate scale in Chicago, a key strategic market for Mattress Firm, while also increasing our penetration in the Orlando market where Mattress Firm already has a prominent company-operated store base," said Steve Stagner, Mattress Firm president and CEO. "We expect the transaction will allow us to drive market-level profitability in both the Chicago and Orlando markets, gaining momentum over time as we rebrand and integrate the acquired stores, which we expect to be completed by the end of this fiscal year."

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