SCC buys Casper Canada
TORONTO – Sleep Country Canada Holdings (SCC), parent company to this country’s largest mattress retail organization, has acquired 100% ownership of the Canadian assets of Casper Sleep Inc., the U.S. mattress purveyor often credited as the original disruptor of the mattress industry in North America.
The deal closed April 14.
“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 four years ago,” SCC president and said Stewart Schaefer, President and CEO of Sleep Country.
“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?’,” he continued, adding, “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.”
“We are thrilled to expand upon our retail journey by partnering up with one of North America’s top sleep retailers,” said Emilie Arel, CEO of Casper Sleep Inc. “Sleep Country has been a retail mattress legacy for almost three decades, and sharing best practices with this leading retailer only helps accelerate our expertise and rapid growth in the retail omnichannel space.”
SCC has agreed to acquire substantially all of Casper’s Canadian assets for US$20.6 million. Over the next four years, SCC will also receive a cumulative US$4.5 million marketing transition fee from Casper as well as three-year warrants which would convert into a ~1% stake in Casper Sleep Inc. upon exercise. In addition, Sleep Country invested US$20 million in five-year convertible notes which will have the option of converting into ~5% of Casper Sleep Inc.'s shares.
In addition to its online portal, Casper operates six brick-and-mortar stores in Canada, one in each of Vancouver and Calgary and four in the Greater Toronto Area. The New York-based Casper had total estimated sales of US$360 million in 2021. Its Canadian operation is believed to generate revenues of roughly $40 million, although the figure has never been acknowledged.
Some observers saluted SCC’s move to buy Casper’s Canadian operations, noting will strengthen its hand in the DTC (direct to consumer) marketplace and make a strong addition to its other recent acquisitions including Endy, Hush and Silk & Snow, which it bought late last year.
Casper’s bed-in-a-box assortment joins a growing group of like products already in SCC’s stable which in addition to Endy and Silk & Snow includes Simba and Bloom, its in-house brand.