Houston-based Mattress Firm Holding Corp., the nation’s No. 1 purveyor of specialty mattresses, is buying its No. 2 rival, Hicksville, N.Y.-based Sleepy’s, for $780 million. The acquisition of the latter’s more than 1,050 stores in 17 states will put Mattress Firm’s retail operations into every state except Alaska and Wyoming with nearly 3,500 outlets served by 80 distribution centers and pro forma sales pegged at more than $3.6 billion. It plans to operate under both the Mattress Firm and Sleepy's brands in the near term, according to the release announcing the deal.“Company officials said the acquisition would make Mattress Firm the first truly national coast-to-coast retailer of its kind,” writes Mike D. Smith for the Houston Chronicle, with annual saving of $40 million by the end of its third year. It will be entering Massachusetts, Vermont, New Jersey, Maryland, Connecticut and Rhode Island for the first time, it said on a conference call, Reuters’
Our combined company will be able to further benefit from national scale in key areas including distribution, customer delivery, advertising, sourcing and procurement, and operating expenses,” says Mattress Firm CEO Steve Stagner in the statement.When the deal closes — expectations are by August of 2016 — Adam Blank, Sleepy’s current COO and general counsel, will join Mattress Firm’s executive team as Sleepy’s president.“I look forward to partnering with David Acker during this transition period, as we bring together these two great companies that share a strong focus on culture, the customer and overall service experience,” says Stagner.The deal represents the end of an era for the Acker family, Josh Kosman reports for the New York Post. It has controlled what is now Sleepy’s since Louis Acker opened his first store, Bedding Discount Center, in Brooklyn in 1931. Sleepy’s — “home of the only Mattress Professionals,” according to the company timeline — opened its doors in 1957 under the guidance of Louis’ son, Harry.
“Now about 80,” Harry “really expanded the chain,” Kosman writes. “Sometimes the younger Acker would build several Sleepy’s stores around a competitor’s store and drive that store out of business.” Harry’s son, David, has been president of Sleepy’s since 2001, according to Wikipedia. Over the years, Sleepy’s has acquired such competitors as Klein Sleep, Rockaway Bedding and, most recently,Mattress Firm has grown through several acquisitions in recent years, including the 2014 purchase of Sleep Train for about $425 million,” Josh Beckerman writes for the Wall Street Journal. It lowered its full-year earnings guidance in September, Beckerman reports, but “said Monday that it posted a strong third quarter, with net sales rising 50.7% to $699.5 million as same-store sales rose 3.8%.” reversal of recent performance.“Mattress Firm agreed to the takeover after sluggish demand and discounting weighed on its results, dragging down its stock over the past year.
shares are down 31% in the trailing 12 months,” Bloomberg’s Nick Turner reports. But investors weren’t losing any sleep over the deal last night, which was announced after trading closed Monday. “Shares of Mattress Firm rose $4.59, or 9.3%, to $53.95 in aftermarket trading after the deal and the preliminary results were announced,” the AP reports.Earlier this year, Bloomberg’s Sam Grobart did a piece investigating Sleepy’s ubiquitous presence in Manhattan — “Why Are There So Many Sleepy's Mattress Stores? out that its more than 30 locations added up to more than the Gap (13), Whole Foods (seven) and Best Buy (six) combined. There are several reasons why the strategy make sense business-wise, he proffers, although Sleepy’s itself declined to participate in the story. But perhaps the biggest is the fact that profit margins in the business are said to be up to 50% per mattress. “With numbers like that, you don’t have to move a lot of them to have a really good day,” Grobart surmises.
There was no immediate word on the fate of Sleepy’s jingle, itself a soporific, which ends: “Trust Sleepy's … for the rest ofA good night's sleep can make a world of difference, and all it starts with the right mattress. Sleepy’s is here to help. We stock a massive range of matressses online, including gel mattresses, latex mattresses, pocket spring mattresses and zoned mattresses. Every mattress is quality assured and Australian made, giving you the best sleep experience possible. The type of mattress you select is extremely important – it can impact on the amount of partner disturbance you experience, it can create or prevent tossing and turning, and it can affect your depth of sleep. Be sure to discover the benefits of each type so you know you are buying the mattress suited to you, or visit your nearest Sleepy’s store and let our friendly staff assist you. Our featured brands include Sleepmaker, Tontine, Nature’s Touch Bedding, Crown and more.
With such a wide variety of options, you are sure to find your ‘mattress match’ at Sleepy’s. Browse through our collection or use our side bar to narrow down your search by range, size, price, brand or type. From there you can click through to individual mattresses to see pictures, prices, descriptions and any reviews, as well as completing our quick and easy ordering process. We also offer free removal of your old mattress on delivery of your new one, because at Sleepy’s, we believe in great service from start to finish. Investing in a quality mattress is an investment in your overall health – do yourself a favour and find yourself the good night’s sleep that you’ve been waiting for now! Add this to your Wishlist - Get local deals in your inbox Sign up with Email Share a link to with a friend via Email. Your Email Has Been Sent Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members.
After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads. 268 posts, read 625,535 times 12,284 posts, read 27,880,325 times Originally Posted by tahiti No normal spring style with a memory foam pad on top -- sooo comfortable! I laid on a tempur pedic but didn't like it. Neat concept, but not for me. I heard Sleepys is not a good place to buy from either. Someone told me their customer support stinks. Originally Posted by ghuber we were plopping all over the different beds, i wonder if this was the one that was black and white...if so.. we actually were in the outlet store and just needed a twin mattress, no boxspring. we got a good deal and the service was fine. 2,664 posts, read 8,446,264 times 128 posts, read 78,103 times 1,028 posts, read 3,111,935 times Originally Posted by Princess&Pea It must 've been delivered today? Talk about customer service! 3,722 posts, read 7,521,034 times