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Be the first with the news that moves the market- Sleep Country Canada (ZZZ) is buying the Canadian assets of American rival Casper Sleep
- Sleep Country refers to New York-based Casper as “the original disruptor of the mattress industry in North America”
- The deal is worth US$20.6 million, and includes $4.5 million marketing transition fee, to be paid by Casper over the next four years
- Casper Sleep launched in New York City in 2014 with the goal of disrupting the traditional mattress market
- Sleep Country Canada (TSX:ZZZ) is up 2.63 percent, trading at C$23.43 at 10:57 am ET
Sleep Country Canada (ZZZ) is buying the Canadian assets of American rival Casper Sleep.
Ontario-based Sleep Country is buying all the assets making up the Canadian side of Casper Sleep’s operation.
Sleep Country refers to New York-based Casper as “the original disruptor of the mattress industry in North America.”
The deal is worth US$20.6 million, and includes US$4.5 million marketing transition fee, to be paid by Casper over the next four years.
Sleep Country is also investing US$20 million in five-year convertible notes which it will have the option of converting into Casper Sleep shares, amounting to around a five-percent equity stake.
Casper Sleep launched in New York City in 2014 with the goal of disrupting the traditional mattress market.
“We are very excited to acquire 100% of Casper’s Canadian retail business, who invested over $1 billion globally to build a leading brand that elevated the importance of a good night’s sleep for all. With their omnichannel business, and their mission to deliver a frictionless and elevated sleep retail experience, they align perfectly with our strategic omnichannel journey that began 4 years ago,” Sleep Country President and CEO Stewart Schaefer said in a statement.
Sleep Country Canada was founded in 1994 in Vancouver.
“Casper, combined with our entire house of other leading brands like Tempurpedic, Sealy, Kingsdown, Endy, and many others, reinforces our 29-year brand statement of “Why buy a mattress anywhere else?,” Schaefer said.
“We look forward to growing Casper’s brand in Canada to make the newest member of our family of brands more accessible to all Canadians in a seamless manner that will exceed our growing customer expectations. We are excited to continue working with Casper Sleep Inc. as they continue executing their long-term strategic growth plan.”
Sleep Country Canada (TSX:ZZZ) is up 2.63 percent, trading at C$23.43 at 10:57 am ET.
