Casper selling Canadian operations to Sleep Country
Canada’s Sleep Country has bought the Canadian ops of the original mattress disruptor.
Sleep County Canada Holdings Inc. has agreed to acquire 100% ownership of substantially all the Canadian assets of Casper for $20.6 million.
In addition, Sleep Country will get a $4.5 million marketing transition fee from Casper during the the next four years and receive three-year warrants that could convert into an approximate 1% stake in Casper upon exercise. Sleep Country also invested $20 million in five-year convertible notes that could convert into approximately 5% of Casper’s shares.
Casper, which launched online in 2014 and was acquired by Durational Capital Management in 2022, pioneered the mattress-in-a-box concept and is credited with helping to reenergize the mattress category. The company has expanded its offerings beyond mattresses in recent years to include pillows, bedding, furniture and more.
In addition to its e-commerce site, the brand operates approximately 72 brick-and-mortar stores, including six stores in Canada.
Casper products are alo available at a variety of retailers. It 2021, it entered into a partnership to sell its brand in Sleep Country stores and online.
"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,” said Stewart Schaefer, president and CEO of Sleep Country, which operates 290 corporate-owned stores and 20 warehouses across Canada. “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.”
Casper is not Sleep Country’ first DTC mattress acquisition. In 2018, it bought online mattress firm Endy for $88.7 million.
"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?," said Schaefer.
Sleep Country is Canada's leading specialty sleep retailer, with banners that include Sleep Country Canada, Dormez-vous, Endy, Hush and the recently acquired Silk & Snow.