Mattress Firm completes Sleep Train acquisition

Houston –- Mattress Firm Holding Corp. has completed its $245 million acquisition of West Coast bedding specialty retailer The Sleep Train Inc. Sleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net sales of approximately $471 million for the 2013 fiscal year.



Dale Carlsen, CEO of Sleep Train, becomes president and chief strategy officer of the company and will join the Mattress Firm board of directors as vice chairman. Rob Killgore, COO of Sleep Train, becomes co-COO of the company along with current Mattress Firm COO, Ken Murphy. Ron Mittelstaedt, who currently serves as the chairman and CEO of Waste Connections Inc., also joins the Mattress Firm board of directors effective with the closing of the acquisition. The company will maintain a West Coast corporate headquarters near Sacramento, Calif.



Mattress Firm has also entered into a new senior secured credit facility including an asset-based revolver of $125 million and term B loan of $720 million. The company’s existing credit facility, including its outstanding term loan borrowing, was terminated upon the closing of the transaction. Barclays Bank PLC, Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC, and UBS Securities LLC acted as joint bookrunning managers and joint lead arrangers.