Sleep Country Canada to acquire Endy in $89M deal
Sleep Country Canada holdings Inc. says it will acquire online mattress retailer Endy for nearly $89 million. David Friesema, the CEO of Sleep Country Canada, sits on the new "Bloom" mattress, as he poses for a photo at a store in Toronto on Wednesday, May 10, 2017. The Toronto-based company says its signed a definitive agreement to acquire the mattress-in-a-box firm, a Canadian start-up that launched in 2015. THE CANADIAN PRESS/Aaron Vincent Elkaim
The Canadian Press
Published Thursday, November 29, 2018 6:09PM EST
TORONTO -- Sleep Country Canada Holdings Inc. announced a deal to acquire a Canadian mattress-in-a-box retailer in a nearly $89-million deal that looks to boost its online offerings.
"We recognize that consumer shopping habits are evolving and we remain focused on serving our customers any way they want to shop, and providing them with the choice to navigate easily between traditional and online channels," said David Friesema, Sleep Country's CEO, in a statement Thursday.
The company signed a definitive agreement to acquire the start-up Endy, which launched in Canada in 2015.
Sleep Country Canada will pay up to $88.7 million for the acquisition. It will pay $63.7 million cash at closing and up to $25 million more in cash in early 2021 if certain growth and profitability targets are achieved in the previous year.
The company's revolving credit facility will be upsized by $60 million to $210 million to finance the transaction, which is subject to customary closing conditions and expected to close on Dec. 6 of this year.
Endy will continue to operate separately following the acquisition with founders Rajen Ruparell and Mike Gettis remaining at the helm of the business, Friesema said. Gettis will continue to serve as Endy's CEO, while Ruparell will chair a board comprised of Sleep Country and Endy senior management that will provide general oversight.
"This acquisition will allow us to continue to grow rapidly and exceed customer expectations in a rapidly evolving retail climate, while remaining separate," said Ruparell in a statement.
Sleep Country already sells a mattress-in-a-box product, Bloom, which comes in four different styles and price levels.