Sleepy’s sold to Mattress Firm
Steve’s breakdown: We think the opportunity here is with Sleepy’s because the 80 year old CEO and son of the founder is so done. BTW: They plan to keep both brands for the near future.
HICKSVILLE, NY: The ubiquitous New York mattress chain Sleepy’s is putting to rest the sales and merger rumors — by selling out.
Mattress Firm, the largest mattress specialty retailer, announced Monday it was acquiring Hicksville-based Sleepy’s and its 1,050 stores for $780 million.
That may be a good thing for New Yorkers.
“I think Sleepy’s was very expensive for customers,” a bedding manufacturer who sells to both chains said.
“You get a much better value in a Mattress Firm store.”
Mattress Firm has little presence in New York, but nationally it has more than double the number of Sleepy’s stores, with 2,420 locations.
The company, whose goal is to attain same-day delivery capability in a lofty 95 percent of the country, now will have filled in its last major geographical gap.
Mattress specialty retailers in recent years represent about half of mattress sales, with furniture retailers comprising most of the rest. With little geographic overlap, the acquisition should not raise antitrust concerns, sources said.
For Sleepy’s Acker family, it is the end of an era. In 1931, Louis Acker opened his first mattress store in Brooklyn. However, it is his son Harry, now about 80, who really expanded the chain.
Acquisitions include onetime New York bedding king Klein Sleep, Rockaway Bedding and Dial-A-Mattress.
Sometimes the younger Acker would build several Sleepy’s stores around a competitor’s store and drive that store out of business.
In announcing the deal, Mattress Firm said it would operate under both brands in the “near term.”
Sleepy’s, through its private equity co-owner Calera Capital, did not return calls for comment.