News Column

Mattress Firm Acquires Sleep Train for $425 Million

September 4, 2014

Dale Kasler, The Sacramento Bee

Sept. 04--The Sleep Train Inc., the homegrown mattress retailer that became a West Coast juggernaut, was sold early today to a Houston retailer for $425 million.

Rocklin-based Sleep Train, whose name graces the current Sacramento Kings arena, is being sold to Mattress Firm Holding Corp., the two companies announced.

Dale Carlsen, founder and chief executive of Sleep Train, told The Sacramento Bee that the Sleep Train brand will remain in place. So will the 70 jobs at Sleep Train's headquarters, "for the most part."

Carlsen will become president and chief strategy officer of Mattress Firm, and will be based at Sleep Train's existing offices.

"I'm not going anywhere," he said. "I'm a Sacramento boy."

Carlsen, who became a part owner of the Kings last year, said the naming-rights deal at the team's Natomas arena is expected to remain in place. The building is expected to be replaced in two years.

Carlsen said the opportunity to forge a national company proved irresistible.

The combined company will be "the first coast-to-coast, border-to-border specialty mattress company," he said. "It was an opportunity I couldn't pass up."

He said the deal represents "a tremendous opportunity" for his employees, who own more than 20 percent of Sleep Train.

Sleep Train operates 312 stores in six states. According to Furniture Today magazine, it generated revenue of $471 million last year.

Mattress Firm consists of 1,500 company-owned and franchised stores in 36 states. The publicly owned company earned $52.9 million in profit on $1.22 billion in sales last year.

"This unique and transformational opportunity will meaningfully enhance Mattress Firm's position within the specialty retail bedding industry," said Steve Stagner, chief executive of the Houston company, in a prepared statement. "These two companies are ideal partners."


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Original headline: Update: Texas-based Mattress Firm acquires Sacramento's Sleep Train for $425 million

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Source: (c)2014 The Sacramento Bee (Sacramento, Calif.)

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