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."
(c)2014 The Sacramento Bee (Sacramento, Calif.)
Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com
Distributed by MCT Information Services
Original headline: Update: Texas-based Mattress Firm acquires Sacramento's Sleep Train for $425 million
Most Popular Stories
- Alabama House Speaker Arrested on Felony Ethics Charges
- 'Fury' Blows 'Gone Girl' Out of the Box Office
- German Intelligence Blames Ukraine Rebels for MH17
- Turkey to Help Kurds Reach Fight in Kobani
- Clinton Rallies Early Vote for Landrieu
- Car Drivers Warned to Get Air Bags Fixed
- Prius Drivers Battle Stereotypes
- ISIS Seeks to Expand Terror War
- Obama Building Ebola Coalition for Africa Fight
- Sub Hunt Brings Cold War Chill Back to Baltic