Tempur Sealy International, a global bedding provider, has announced an agreement to acquire specialty UK bed retailer Dreams for $475m (£335m).
The deal, which will take place between Tempur and an affiliate of Sun Capital Partners, is set to accelerate the group’s growth the the UK bedding marking.
Acting as an independent business unit and led by its current management team, Dreams will complement Tempur’s existing UK operations, as well as its newly-formed Sealy UK joint venture.
Scott Thompson, chairman and CEO at Tempur, said: “We have worked with Dreams for many years and they are one of the most talented retailers we service. They have consistently demonstrated best-in-class web marketing, customer service and sales capabilities.
“This acquisition better positions both organizations to service customers and bring innovative products to market.”
As a result of the takeover, Tempur claimed that it expects its global annual sales to reach $1bn (£705m).
Moreover, Dreams is expected to generate annual sales of roughly $450m (£318m) in the first year following the close of the sale in Q3 FY21.
Mike Logue, CEO at Dreams, said: “Today marks a milestone for Dreams. It is recognition of the transformation we have delivered and an endorsement of our customer-focused strategy, our culture and our values.
“With Tempur Sealy, we expect to drive our growth strategy and build on our position as the most recommended specialist bed retailer in the UK.”
Paul Daccus, managing director at Sun European Partners, added: “Our work with Dreams underscores our strength in partnering with outstanding management teams to accelerate value creation.
“We are very pleased that our extensive experience in enhancing operations and capitalising on new opportunities allowed us to achieve this positive outcome for Dreams and our investors.”