Mattress Firm To Add More Than 140 Locations
Furniture World Magazine
Mattress Firm, one of the nation’s leading mattress retailers, announced that it has signed a Letter of Intent to acquire Mattress Discounters Corporation, an Upper Marlboro, Md.-based mattress retailer and manufacturer with more than 140 stores across the Northeast. Mattress Discounters is currently the leader in number of locations in the majority of markets where the company operates which include Baltimore, Boston, Providence, R.I., New Hampshire, Richmond, Va., and the Washington D.C. Metro Area. Terms of the acquisition, which is currently in the due diligence phase, were not disclosed.
The planned acquisition of Mattress Discounters will mark Mattress Firm’s entry into New Hampshire, Rhode Island, Massachusetts, Maryland, Virginia and Washington, D.C. The acquisition will expand Houston-based Mattress Firm’s total store count nationwide to more than 500 stores in 40 markets across 25 states.
“This acquisition allows Mattress Firm to enter several new fast-growing markets and is another step in our overall expansion strategy that includes both organic and acquisition growth,” said Gary Fazio, CEO of Mattress Firm. “Mattress Discounters has developed a solid reputation and loyal customer following throughout the Northeast, and Mattress Firm is committed to carrying on this tradition. At the same time, we will bring our unique retail experience, sleep expertise and the broadest selection of products and brands in the mattress industry to create a unique destination for consumers.”
Mattress Discounters opened its first location in 1978, and has since grown to become an industry leader, employing more than 500 people across five states. Mattress Discounters locations, known as Sleep Centers, are similar to Mattress Firm stores, offering a similar product mix with a focus on providing exceptional customer service. Mattress Discounters also operates a manufacturing facility, where it produces the company’s private label mattresses, which Mattress Firm will assume control of after the acquisition.
Steve Newton, current CEO of Mattress Discounters, said, “I am proud to have worked with such a dedicated team of individuals. The effort and commitment that everyone has shown over the past years has led to true value creation for our stakeholders. It is a bittersweet moment for me, but I believe that this is a tremendous opportunity for the vast majority of our 500 employees. It was very clear to us that Mattress Firm was an excellent cultural fit, and under Gary’s stewardship, I believe that our people and our company will continue to prosper and grow.”
This announcement comes on the heels of Mattress Firm’s recent announcement that the company has signed a letter of intent to acquire Las Vegas-based Bedtime Mattress Co., which operates two retail brands, Bedtime and Mattress Direct, at 15 locations throughout the greater Las Vegas area. That deal is expected to close within the next few weeks.
About Mattress Firm: Houston-based Mattress Firm (www.mattressfirm.com) is America’s preferred specialty mattress company and the nation’s largest specialty retailer of top-of-the-line Sealy products. Founded in 1986, Mattress Firm’s knowledgeable sales staff, broad product offering and competitive prices have fueled the company’s growth to over 350 stores in 33 markets.