Sleep Country Canada Holdings Inc. says it will acquire Casper Sleep Inc.’s Canadian operations. The Toronto-based mattress retailer will pay $20.6 million US for the Canadian assets of the mattress-in-a-box company, which is headquartered in New York City.
Sleep Country will receive a $4.5 million marketing transition fee from Casper over the next four years and three-year warrants, which would convert into a one per cent stake in Casper.
Sleep Country president and CEO Stewart Schaefer said Casper invested more than $1 billion globally “to build a leading brand that elevated the importance of a good night’s sleep for all.”
“We look forward to growing Casper’s brand in Canada to make the newest member of our family of brands more accessible to all Canadians in a seamless manner that will exceed our growing customer expectations,” Schaefer said in a press release.
He said the company is excited to work with Casper as it continues executing its long-term strategic growth plan.
Casper CEO Emilie Arel said sharing best practices with Casper will help accelerate Sleep Country’s growth across retail channels.
Sleep Country says it has also invested $20 million in five-year convertible notes, which can be converted into about five per cent of Casper shares.
The deal comes as the number of e-commerce companies selling compressed and rolled mattresses in boxes that ship directly to customers has soared in recent years.
Sleep Country bought online mattress firm Endy for $88.7 million Cdn in 2018.
Source : CBC
