Mattress Firm Getting Into Bed With Rival Sleepy’s In Deal Worth $780M

Instead of going to the mattresses* like they used to, two big rivals are hopping into bed together: Mattress Firm Holdings has agreed to buy Sleepy’s in a $780 million deal.

The merger will unite the two biggest names in the U.S. specialty mattress business, reports Bloomberg, with Mattress Firm taking on $30 million in liabilities as part of the deal.

The companies said the merged business would have a 21.2% share of the specialty mattress market, according to industry data released in 2014: the addition of Sleepy’s will give the new company a total of almost 3,500 retail stores and 80 distribution centers in 48 states, with only Wyoming and Alaska missing out on brands like Mattress Discounters, and

Mattress Firm could use a little pick-me-up (and put-me-to-bed?) after seeing demand dip, and discounts took a bite out of its sales results. Investors won’t be going to bed angry, either: shares of Mattress Firm went up by 7.7% upon the news this morning that the companies are getting together.

*See: Godfather

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