Houston-based retailer Mattress Firm announced it is acquiring employee-owned Sleep Train Inc., with headquarters in Sacramento, California, the parent of sleep shop chains Got Sleep?, Mattress Discounters, Sleep Country USA and Sleep Train, for $425 million. Sleep Train operates 312 storefronts in California, Hawaii, Idaho, Nevada, Oregon and Washington state.
“This unique and transformational opportunity will meaningfully enhance Mattress Firm’s position within the specialty retail bedding industry,” said Steve Stagner, Mattress Firm president and chief executive officer. “The acquisition of Sleep Train will establish Mattress Firm as the first border-to-border, coast-to-coast, multibrand mattress specialty retailer in the United States, with pro forma sales approaching $2 billion a year. It allows us to share best practices and integrate two industry-leading management teams, positioning Mattress Firm for accelerated growth.”
The company will continue to operate with separate headquarters under both the Mattress Firm and Sleep Train brands, a Mattress Firm news release said. The combined entity will operate approximately 2,000 sleep shops and 70 distribution centers with 5,000 employees, in 40 states.
Dale Carlsen, Sleep Train’s founder and chief executive officer, will become Mattress Firm president and chief strategy officer. He also becomes a member of the Mattress Firm board of directors and its vice chair. Rob Kilgore, Sleep Train chief operating officer, will be named Mattress Firm’s co-chief operating officer, with current Mattress Firm chief operating officer, Ken Murphy.
Sleep Train will “largely maintain its current staffing model” and continue its philanthropic efforts on behalf of foster children, a Sleep Train news release said.
“(The two companies) share a common commitment to our customers, our employees and our communities,” Carlsen said. “Today’s announcement represents the hard work of the Sleep Train employee owners who now together with their Mattress Firm peers will move to transform the bedding retail industry. Our combined company will deliver a better night’s sleep to consumers across the country, while exemplifying a positive company culture focused on employee engagement, advancement and the expansion of meaningful charity programs across the nation.”