Mattress Firm to buy Sleepy's for $780 million

Houston-based Mattress Firm has agreed to buy rival HMK Holdings, the parent company of Sleepy's, for $780 million.

The company plans to continue operating under both the Mattress Firm and Sleepy's brands in the near term.

Mattress Firm is the largest specialty mattress seller in the U.S. and reported preliminary net sales of $699.5 million for its fiscal third quarter—up 51 percent year over year.

Together with No. 2 Sleepy's, the company will operate close to 3,500 stores for more than $3.6 billion in sales and a 21.2 percent market share, according to The Wall Street Journal. Mattress Firm has consisently grown by acquisition and operates stores under several different banners including Mattress King and Bedmart.

The deal is expected to close in the first half of fiscal 2016.

For more:
-Read this article in The Wall Street Journal
-See this Mattress Firm announcement

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