Published by Insider Media
DREAMS TO BE SNAPPED UP IN MULTIMILLION-POUND DEAL
Dreams, a bed retailer with locations across the UK, is to be acquired by Tempur Sealy International in a $475m deal.
The acquisition, primarily from an affiliate of Sun Capital Partners, will accelerate Tempur Sealy's growth in the largest European bedding market.
The transaction price is approximately $475m, less net debt and any working capital deficit.
Dreams has developed a successful multi-channel sales strategy, with more than 200 physical retail locations, an online channel, as well as manufacturing and delivery assets.
It will be operated as an independent business unit and led by the current management team. It is expected to complement the company's existing UK Tempur operations and its recently-formed Sealy UK joint venture operations.
Dreams chief executive Mike Logue said: "Today marks a milestone for Dreams. It is recognition of the transformation we have delivered and an endorsement of our customer-focused strategy, our culture and our values.
"With Tempur Sealy, we expect to drive our growth strategy and build on our position as the most recommended specialist bed retailer in the UK. I would like to take this opportunity to thank our 2,000 colleagues for their hard work, dedication and commitment."
Tempur Sealy International chairman and chief executive Scott Thompson added: "We have worked with Dreams for many years and they are one of the most talented retailers we service. They have consistently demonstrated best-in-class web marketing, customer service and sales capabilities.
"This acquisition better positions both organisations to service customers and bring innovative products to market. We look forward to welcoming the entire Dreams organization to the Tempur Sealy family."
The transaction is expected to close in the third quarter of 2021, subject to receipt of regulatory approval from the UK Financial Conduct Authority.
Established in 1985, Dreams has 2,000 employees across the UK and sells more than 10,000 mattresses, bases and headboards per week.