HOUSTON-Mattress Firm has signed an agreement to acquire the assets and operations of Factory Mattress & Water Bed Outlet of Charlotte for $11.2 million.
A Mattress Firm statement said the closing of the deal is expected to take place by the end of the fiscal fourth quarter, or about the end of January. Factory Mattress & Water Bed Outlet has 28 mattress specialty stores in North Carolina and South Carolina, all branded as Mattress Source. Mattress Firm said it intends to rebrand the stores as Mattress Firm subsequent to the closing.
In September, Mattress Firm completed its acquisition of Mattress XPress, which brought under its umbrella 29 mattress specialty stores in south Florida and five in Georgia. The statement said the two acquisitions are part of Mattress Firm’s core market-share strategy, which is to add stores in markets where the company currently has other Mattress Firm stores. “The addition of the acquired stores, once rebranded, is expected to drive advertising efficiency and improved market-level profitability in those markets,” the statement said.