TORONTO—Sleep Country Canada has acquired online mattress brand Endy for about $66 million. Of the purchase price, about $42 million will be paid up front and the remainder will be due in early 2021, if growth and profitability targets are hit in 2020.
In its first news release regarding the acquisition, Sleep County Canada, noted the move helps to expand its offerings and better tailor itself to the changing needs of shoppers.
"We recognize that consumer shopping habits are evolving and we remain focused on serving our customers any way they want to shop," Sleep Country CEO David Friesma said in a statement, adding that the acquisition offers "the choice to navigate easily between traditional and online channels."
The two businesses, Sleep Country said in a news release, will operate independently, and Endy employees will remain with the company. Co-founders Rajen Ruparell and Mike Gettis also are expected to remain in their respective roles as board chair and CEO.
"The company's leadership demonstrates entrepreneurship at its finest," Stewart Schaefer, chief business development officer at Sleep Country, said in a statement. "Endy is a true Canadian success story, growing by (more than) 150 percent year over year in 2018, while remaining profitable."
Endy, which specializes in bed-in-a-box style mattresses, was established in 2015. Three years later, after experiencing what Sleep Country called "significant" growth within the market, the brand was named Canada's fastest growing retail company on the 2018 Startup 50 list, compiled by Maclean's and Canadian Business.
"We have watched and admired Endy's growth for the last three years and respect the work they have done to build and grow their business," Schaefer said. "...We believe Endy will position us strongly as "Best-in-Class" in Canada to compete against local and U.S. entrants."
Coming under the Sleep Country umbrella offers Endy more room to grow, according to Ruparell. With its network of 264 stores and 16 distribution centers across Canada, Sleep County offers Endy new venues to reach consumers.
"This acquisition will allow Endy to continue to grow rapidly and exceed customer expectations in a rapidly evolving retail climate, while remaining separate," Ruparell said.