(Toronto) Sleep Country Canada announced Monday its intention to acquire Casper Sleep’s Canadian operations.
Toronto-based mattress retailer Sleep Country, which also operates dormez-vous? stores, intends to raise $20.6 million for the US company’s Canadian assets, which sell boxed mattresses.
Sleep Country will receive a $4.5 million marketing transition fee from Casper over the next four years and three-year warranties that will convert into a 1% equity interest in Casper.
Sleep Country President and CEO Stewart Schaefer said Casper has invested more than $1 billion globally “to create a benchmark brand that has underscored the importance of a good night’s sleep for everyone.”
“We look forward to expanding the Casper brand in Canada to make the newest member of our family of brands more accessible to all Canadians in a seamless way that will exceed the growing expectations of our customers,” Schaefer continued in a statement.
He said the company is excited to be working with Casper as it continues to execute on its long-term strategic growth plan.
Casper CEO Emilie Arel said that sharing best practices with Casper would help accelerate Sleep Country’s growth in omnichannel retail.
Sleep Country said it also has $20 million invested in five-year convertible bonds that are convertible into about 5% of Casper’s stock.
The number of e-commerce companies that sell compressed and rolled mattresses in boxes that are shipped directly to consumers has risen sharply in recent years.
Sleep Country bought mattress company Endy for $88.7 million in 2018.
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