Mattress Firm Holding Corp. has agreed to acquire rival mattress retailer the Sleep Train Inc. for $425 million in cash and stock.
Houston-based Mattress Firm said the deal for Sleep Train, announced Thursday, will greatly expand its footprint in the West, adding about 310 retail shops in California, Oregon, Washington, Idaho, Nevada and Hawaii.
"The acquisition of Sleep Train will establish Mattress Firm as the first border-to-border, coast-to-coast multi-brand mattress specialty retailer in the United States,” Chief Executive Steve Stagner said in a statement.
Mattress Firm said it plans to keep the Sleep Train brand.
Sleep Train was founded in 1985 and is based in Rocklin, Calif., near Sacramento.
The newly combined mattress company would operate roughly 2,000 specialty retail stores and 70 distribution centers across 40 states.
Mattress Firm also will assume closely held Sleep Train’s liabilities of about $15 million.
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