Mattress Firm, a leading bedding retailer based in Houston, plans to acquire all of the BedMart stores in Arizona as part of a $35 million deal.
The company’s publicly traded parent, Mattress Firm Holding Corp., says it has entered into an agreement to acquire substantially all of the store assets and operations of Denver-based Mattress Liquidators Inc., which operates Mattress King retail stores in Colorado and BedMart stores in Arizona.
BedMart, founded in Tucson in 1988, has four stores in the Tucson area and nearly 30 in the Phoenix area.
Mattress Firm opened its first store in Tucson in 2011 and now has 13 stores in the Tucson metro area. The parent company is traded on the Nasdaq Stock Market, with a market capitalization of about $1.5 billion.
The deal, which is expected to close by late May or June, will add about 75 stores to Mattress Firm’s roster of company-operated stores in markets where the company currently operates, mainly Denver, Tucson and Phoenix, the company said.
The total transaction is worth about $35 million, including a $3.5 million seller note that is payable in quarterly installments over two years, the company said.
Steve Stagner, Mattress Firm president and CEO, said in a news release that the acquisition of the Denver stores will help the company leap to a strong position in the Mile High City, after the company’s buyout of its franchised stores there last month.
The additional stores in Phoenix and Tucson “will supplement the existing base of quality stores that we currently operate in those markets,” Stagner said.
Mattress Firm spokeswoman Kim Hardcastle said decisions on the future of individual store locations or the possible rebranding of outlets are on hold pending completion of the acquisition.
