Sleep Country Canada Holdings Inc. announces it will acquire Casper Sleep Inc.’s Canadian operations.
The Toronto-based mattress retailer is paying $20.6 million for the Canadian assets of the New York City-headquartered mattress-in-a-box company.
Sleep Country will receive a $4.5 million marketing transition fee from Casper over the next four years, as well as three-year warrants that would convert to a 1% interest in Casper.
Sleep Country President and CEO Stewart Schaefer said Casper has invested more than $1 billion globally “to build a leading brand that increases the importance of a good night’s sleep for everyone.”
“We look forward to expanding the Casper’s 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 growing customer expectations,” Schaefer said in a press release.
He said the company looks forward to working with Casper as it continues to execute on its long-term strategic growth plan.
Casper CEO Emilie Arel said sharing best practices with Casper will help accelerate Sleep Country’s growth across retail channels.
Sleep Country says it also has $20 million invested in five-year convertible bonds that are convertible into about 5 percent of Casper’s stock.
The deal comes as the number of e-commerce companies selling compressed and rolled mattresses in boxes that ship directly to customers has surged in recent years.
Sleep Country bought online mattress manufacturer Endy for Cdn88.7 million in 2018.
“Evil alcohol lover. Twitter junkie. Future teen idol. Reader. Food aficionado. Introvert. Coffee evangelist. Typical bacon enthusiast.”