Miya Pearson
In 2014, Sleep Train, a California-based mattress company with 310 stores in California, Washington, Oregon, Idaho, Nevada, and Hawaii, was sold to Mattress Firm for $425 million. The acquisition of Sleep Train by Mattress Firm, which had 1,500 stores in 36 states, created the largest multi-brand bedding specialty retailer in the United States. Following the acquisition, Mattress Firm continued to operate under both its name and Sleep Train's, with Sleep Train stores located near Mattress Firm stores remaining open. However, in 2017, Steinhoff consolidated its mattress stores under one name, converting Sleep Train and Sleepy's locations to the Mattress Firm name.
| Characteristics | Values |
|---|---|
| Date of acquisition | 2014 |
| Company acquired by | Mattress Firm Holding Corporation |
| Acquisition cost | $425 million |
| Additional liabilities assumed | $15 million |
| Number of stores acquired | 310 |
| States with acquired stores | California, Oregon, Washington, Idaho, Nevada, and Hawaii |
| Sleep Train's net sales in 2013 | $471 million |
| Sleep Train's CEO | Dale Carlsen |
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What You'll Learn
Sleep Train was sold to Mattress Firm for $425 million
Sleep Train was acquired by Mattress Firm in 2014 for $425 million. The deal added 310 stores in California, Oregon, Washington, Idaho, Nevada, and Hawaii to Mattress Firm's portfolio, as well as the Sleep Country USA, Mattress Discounters, and Got Sleep? brands.
Sleep Train's founder and CEO, Dale Carlsen, became the president and chief strategy officer of Mattress Firm after the acquisition, and also took on the role of vice chairman. Carlsen commented that the sale was an "exciting time" and that the merger would allow Sleep Train to become the "best resource across the country for people to have a better night's sleep".
The acquisition of Sleep Train was a significant move for Mattress Firm, as it established the company as the first "border-to-border, coast-to-coast" multi-brand mattress specialty retailer in the United States. With the addition of Sleep Train's stores and sales, Mattress Firm's pro forma sales approached $2 billion annually, and the company had a total of over 2,000 retail stores.
The deal also provided benefits for Sleep Train, as Carlsen noted that it was the "culmination of nearly 30 years of hard work" and that it marked the "beginning of the next chapter in our phase of growth". The merger allowed Sleep Train to leverage Mattress Firm's national scale and provided opportunities for enhanced growth and development for Sleep Train's team members.
In addition to the $425 million purchase price, Mattress Firm also assumed certain additional liabilities totaling approximately $15 million as part of the deal. The acquisition of Sleep Train was expected to bring over $20 million in cost synergies by the third year after closing.
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The deal added 310 stores to Mattress Firm's portfolio
Mattress Firm acquired Sleep Train in 2014 for $425 million, adding 310 stores to its portfolio. The deal also included the Sleep Country USA, Mattress Discounters, and Got Sleep? brands. Sleep Train was a California-based company with stores in Washington, Oregon, Idaho, Nevada, and Hawaii. The acquisition of Sleep Train was a strategic move by Mattress Firm to expand its presence on the West Coast and solidify its position as the leading bedding specialty retailer in the United States.
Sleep Train's CEO, Dale Carlsen, became the president and chief strategy officer of Mattress Firm after the acquisition. Carlsen commented that the transaction was the result of nearly 30 years of hard work by the Sleep Train team and marked the beginning of a new phase of growth. He also emphasised the benefits of bringing the two teams together, including enhanced growth and development opportunities for employees.
The acquisition added significant value to Mattress Firm, providing a large number of retail store locations in major markets, increasing their total enterprise locations to over 2,000 retail stores. The deal also boosted Mattress Firm's annual sales, with pro forma sales approaching $2 billion annually.
Following the acquisition, Mattress Firm continued to operate under both the Mattress Firm and Sleep Train brands, maintaining a West Coast corporate headquarters near Sacramento, California. This decision reflected the company's intention to leverage the strong brand recognition of both entities.
The deal with Sleep Train was part of Mattress Firm's aggressive expansion strategy, which included multiple acquisitions in 2014. In addition to Sleep Train, Mattress Firm also acquired Bedding Experts, Sleep America, and Mattress World, further extending its reach across the country.
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Mattress Firm continued to operate under the Sleep Train brand
In 2014, Mattress Firm Holding Corp acquired Sleep Train Inc. for $425 million, adding 310 stores in California, Washington, Oregon, Idaho, Nevada, and Hawaii. The deal also included the Sleep Country USA, Mattress Discounters, and Got Sleep? names. Sleep Train's founder and CEO, Dale Carlsen, became the president and chief strategy officer of Mattress Firm, and the company maintained a West Coast corporate headquarters near Sacramento, California.
Mattress Firm initially planned to continue operating under both the Mattress Firm and Sleep Train brands. However, in 2017, the company converted its Sleep Train and Sleepy's locations to the Mattress Firm name. This consolidation allowed Mattress Firm to become the largest border-to-border, coast-to-coast multi-brand mattress specialty retailer in the United States.
The acquisition of Sleep Train by Mattress Firm was part of a strategy to expand the company's presence and market share in the mattress retail industry. By acquiring Sleep Train, Mattress Firm gained access to its network of over 300 specialty mattress retail stores and established a stronger presence on the West Coast. This move was intended to provide customers with greater value, convenience, and choice, as well as fortifying Mattress Firm's position as the leading mattress specialty retailer in the United States.
The integration of the two companies also brought together their management teams and aligned their culture and values. According to Sleep Train's founder, Dale Carlsen, the acquisition was the result of nearly 30 years of hard work and marked the beginning of a new phase of growth. The combined entity was expected to benefit customers, employees, and the communities served by both companies.
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Sleep Train's CEO became president of Mattress Firm
In 2014, Sleep Train, a California-based mattress company, was acquired by Mattress Firm Holding Corporation in Texas for $425 million. Sleep Train's founder and CEO, Dale Carlsen, became the president and chief strategy officer of Mattress Firm and joined its board of directors as vice chairman. Carlsen commented that the sale was an exciting time for the local community and the nation, and that the merger would give him the chance to help the charity "Ticket to Dream" on a national platform. The charity, which Carlsen and his wife founded eight years prior, supports foster children with school supplies, backpacks, shoes, and other necessities.
The acquisition of Sleep Train's 310 stores in California, Washington, Oregon, Idaho, Nevada, and Hawaii, as well as its Sleep Country USA, Mattress Discounters, and Got Sleep? names, solidified Mattress Firm's position as the largest border-to-border, coast-to-coast multi-brand bedding specialty retailer in the United States. The deal added over $471 million in net sales for the 2013 fiscal year and provided Mattress Firm with future annual cash income tax benefits of approximately $11 million over the next 15 years.
The merger also created opportunities for expanded store locations and national scale benefits, allowing Mattress Firm to execute its proven relative market share model by opening additional stores in West Coast markets. The combined company was expected to benefit customers, employees, and the communities served by both Sleep Train and Mattress Firm.
Following the acquisition, Sleep Train continued to operate under its own brand, with Mattress Firm announcing in July 2015 that Sleep Country USA stores would begin rebranding under the Sleep Train name. This decision further established the Sleep Train brand in the company's portfolio.
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The acquisition made Mattress Firm the largest bedding retailer in the US
Mattress Firm, a specialty retailer of mattresses and related products, acquired Sleep Train Inc. in 2014 for $425 million. Sleep Train, founded by Dale Carlsen, in 1985, was a West Coast bedding specialty retailer with approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada, and Hawaii.
The acquisition of Sleep Train added a significant West Coast presence to Mattress Firm, with minimal store overlap, and created the nation's largest mattress specialty retailer. With the addition of Sleep Train's stores, Mattress Firm now had over 2,000 stores across the country and pro forma sales of approximately $2 billion annually.
The purchase of Sleep Train was part of Mattress Firm's strategy to expand its business and establish itself as the first border-to-border, coast-to-coast multi-brand mattress specialty retailer in the United States. This acquisition, along with other acquisitions made by Mattress Firm, such as Bedding Experts and Sleepy's, contributed to its growth and expansion nationwide.
Following the acquisition, Mattress Firm continued to operate under both its own brand and the Sleep Train brand for a period of time. However, in 2017, the company began converting its Sleep Train and Sleepy's locations to the Mattress Firm name, unifying its stores under a single brand. The acquisition of Sleep Train played a significant role in Mattress Firm's journey to becoming the largest bedding retailer in the US, solidifying its presence across the country and enhancing its sales and growth.
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Frequently asked questions
Mattress Firm Holding Corporation acquired Sleep Train in 2014 for $425 million. Sleep Train's founder and CEO, Dale Carlsen, became the president of Mattress Firm.
The acquisition gave Sleep Train the chance to help the charity "Ticket to Dream" on a national platform. The charity, for foster children, was started by Carlsen and his wife. Carlsen also said, "This transaction is the culmination of nearly 30 years of hard work by the Sleep Train family of employees and the beginning of the next chapter in our phase of growth."
Mattress Firm initially planned to continue operating under both the Mattress Firm and Sleep Train brands, and would maintain a West Coast corporate headquarters near Sacramento, California. However, in 2017, the company converted its Sleep Train and Sleepy's locations to the Mattress Firm name.
The acquisition of Sleep Train's 310 stores in California, Oregon, Washington, Idaho, Nevada, and Hawaii, established Mattress Firm as the first border-to-border, coast-to-coast multibrand mattress specialty retailer in the United States, with pro forma sales of approximately $2 billion annually and total enterprise locations exceeding 2,000 retail stores.
