Sleep Country acquires Dormez-Vous
TORONTO – Sleep Country Canada Income Fund announced in late December that it will acquire Dormez-Vous Sleep Centers Inc., an independent mattress retailer in Montréal. The acquisition is expected to close early in the New Year.
Dormez-Vous is a profitable, established mattress retailer with five stores in the Montréal region and another currently in development.
Dormez-Vous’ management team will drive the expansion of their company’s successful brand in the Montréal region in 2006, with the benefits of a high-volume Canadian retail partner to enhance economies of scale under the Dormez-Vous banner.
“It’s exciting for Dormez-Vous to team up with the country's top mattress retailer to expand in Québec and use our combined buying power to benefit our customers,” said Stewart Schaefer, founder and owner of Dormez-Vous. “Sleep Country’s systems, resources and buying power will enable Dormez-Vous to expand the number of stores and improve product selection and services we offer to Québec consumers.”
“Dormez-Vous has a strong, established brand name and excellent local management,” said Stephen Gunn, Sleep Country’s Chief Executive Officer. “Dormez-Vous will benefit from Sleep Country’s exceptional buying power and strong financial resources. Québec is a unique market and we believe that helping Dormez-Vous expand is the best way to service the particular needs of Montréal-area consumers.”
No purchase price was disclosed. Dormez-Vous’ expansion in Montréal, as with any regional expansion for Sleep Country, is expected to be EBITDA (earnings before interest, taxes, depreciation and amortization) negative for 12 to 24 months. Sleep Country has substantial resources, including $32.2 million in cash and cash equivalents as of September 30, 2005.
Sleep Country is the largest retailer of mattresses in Canada, providing outstanding in-store and home delivery service from 110 stores in eight regional markets. With more than 700 associates across the country, Sleep Country was recognized in the Globe & Mail as one of Canada’s 50 Best Employers in 2005.
Founded in 1994, the company has demonstrated a track record of growth and stability. Sleep Country Canada Income Fund is an open-ended limited purpose trust that owns 100 per cent of the voting securities of Sleep Country Canada Inc. The fund's units are listed on the Toronto Stock Exchange under the symbol Z.UN.