Mattress Firm Completes Previously Announced Acquisitions

Furniture World News Desk on 10/7/2014

Mattress Firm Holding Corp., a leading retailer of mattresses and accessories in the United States, announced the completion of its acquisition of the mattress specialty retail assets and operations of Back to Bed Inc., M World Mattress LLC, MCStores LLC and TBE Orlando LLC, which collectively operate Back to Bed and Bedding Experts retail stores in Illinois, Indiana and Wisconsin and Bedding Experts and Mattress Barn retail stores in Florida.

This acquisition, which was previously announced on August 29, 2014, added approximately 135 mattress specialty retail stores to the Mattress Firm company-operated store base in both new and existing markets, primarily in the Chicago and Orlando metropolitan areas, for an aggregate purchase price of approximately $60 million, subject to customary adjustments. The purchase price was funded by cash reserves and revolver borrowings.

Mattress Firm expects to rebrand and transition Back to Bed, Bedding Experts and Mattress Barn stores into Mattress Firm stores and has begun the process of outfitting the newly acquired stores with Mattress Firm’s unique “Comfort by Color®” merchandising approach, product offerings, point of sale systems and sales programs.

“Consistent with our core relative market share strategy, this acquisition allows us to secure a strong presence and immediate scale in Chicago, a key strategic market for Mattress Firm, while also increasing our penetration in the Orlando market where Mattress Firm already has a prominent company-operated store base,” said Steve Stagner, Mattress Firm president & chief executive officer. “We expect the transaction will allow us to drive market-level profitability in both the Chicago and Orlando markets, gaining momentum over time as we rebrand and integrate the acquired stores, which we expect to be completed by the end of this fiscal year.”

About Mattress Firm: Houston-based Mattress Firm (NASDAQ:MFRM) is a high growth specialty retailer, recognized as one of the nation's leading specialty bedding companies, offering a broad selection of both traditional and specialty mattresses, bedding accessories and related products from leading manufacturers. With more than 1,700 company-operated and franchised stores across 36 states, Mattress Firm has the largest geographic footprint in the United States among multi-brand mattress specialty retailers. Mattress Firm offers customers comfortable store environments, guarantees on price, comfort and service, and highly-trained sales professionals.