HOUSTON – Mattress Firm has signed a letter of intent to acquire Mattress Discounters Corp., a mattress maker and retailer with more than 140 stores across the Northeast. The acquisition is in the due-diligence phase; terms were not disclosed.
“I am proud to have worked with such a dedicated team of individuals,” Steve Newton, CEO of Mattress Discounters, said in a statement yesterday. “The effort and commitment that everyone has shown over the past years has led to true value creation for our stakeholders.”
Mattress Discounters is a market leader “in the majority of markets where the company operates,” including the Providence, Boston, Baltimore, Richmond, Va., and Washington, D.C., metropolitan areas and New Hampshire, the companies said.
“This acquisition allows Mattress Firm to enter several new fast-growing markets and is another step in our overall expansion strategy that includes both organic and acquisition growth,” CEO Gary Fazio. “Mattress Discounters has developed a solid reputation and loyal customer following … and Mattress Firm is committed to carrying on this tradition.”
Mattress Discounters employs more than 500 people in five states at its “Sleep Centers” and its private-label manufacturing facility, which Mattress Firm would control after the acquisition. The combined firm would have more than 500 stores in 25 states.
Mattress Firm, founded in 1986, is a specialty retailer of Sealy and other high-end mattresses. Its previously announced acquisition of the 15-store Las Vegas-based Bedtime Mattress Co. is expected to close within a few weeks. Additional information is available at www.mattressfirm.com.
Mattress Discounters, based in Upper Marlboro, Md., opened its first store in 1978. Its focus has been providing “premier” customer service and a “handpicked range of top-quality mattresses,” including the private-label mattresses the company makes in its own factory. Additional information is available at www.mattressdiscounters.com.
