HOUSTON-Mattress Firm has reached an agreement to acquire the assets and operations of Mattress Liquidators, which operates Mattress King stores in Colorado and BedMart stores in Arizona.
When closed, the acquisition will add about 75 specialty mattress stores to Mattress Firm’s company-operated store base in the Denver, Phoenix and Tucson, Ariz., markets, where the company already has a presence. The deal will cost Mattress Firm about $35 million, “subject to customary adjustments,” according to a company statement. The closing, subject to the prior satisfaction of customary closing conditions, is expected to take place by the end of this year’s second fiscal quarter, and will be funded by cash reserves and revolver borrowings, as well as a $3.5 million seller note that is payable in quarterly installments over two years, the statement said.
“We believe that the acquisition of the Denver stores will allow us to leap into a strong position in that market, building on the foothold established by the acquisition last month of the formerly franchised Mattress Firm stores in Denver,” said Steve Stagner, Mattress Firm’s president and CEO. “The additional stores in Phoenix and Tucson will supplement the existing base of quality stores that we currently operate in those markets.”