Mattress Firm Acquires Sleepy’s

Mattress Firm Holding Corp. (Houston) has reached a deal with Sleepy’s (Bethpage, New York) to purchase the privately-held chain for $780 million. The deal is expected to close by August 2016.

Mattress Firm operates the most specialty mattress retail stores in the country, and merging with Sleepy’s will bring its store count to about 3500 and a 21.2 percent share of the specialty mattress market. For now, Mattress Firm plans to continue operating the newly-acquired stores under the Sleepy’s brand.

Mattress Firm expects that the acquisition will provide an annual savings of $40 million by the third year after the deal is finalized, reports The Wall Street Journal.