(Toronto) Sleep Country Canada announced Monday its intention to acquire the Canadian operations of Casper Sleep.
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 that 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 to 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 reinforced the importance of a good night’s sleep.” for everyone “.
“We look forward to growing 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 our customers’ growing expectations,” Schaefer continued in a statement.
He said the company is pleased to work with Casper as it continues to execute on its long-term strategic growth plan.
Casper CEO Emilie Arel said sharing best practices with Casper would help accelerate Sleep Country’s growth in omnichannel retail.
Sleep Country said it also invested $20 million in five-year convertible notes, which can be converted into about 5% of Casper’s stock.
The number of e-commerce companies selling compressed and rolled mattresses in boxes delivered directly to consumers has surged in recent years.
Sleep Country bought mattress company Endy for $88.7 million in 2018.