- Sleep Country Canada (TSX:ZZZ) has signed an agreement to be acquired by Fairfax Financial Holdings (TSX: FFH) for approximately C$1.7 billion
- The acquisition would allow the company to leverage Fairfax’s extensive resources and expertise to further enhance its market position and drive innovation in the sleep products industry
- The offer price of C$35 per share represents a 28 per cent premium to Sleep Country stock
- Shares of Sleep Country Canada Inc. last traded at C$27.28 per share and Fairfax Financial Holdings Ltd. last traded at C$1,593.10 per share
Sleep Country Canada (TSX:ZZZ) has signed an agreement to be acquired by Fairfax Financial Holdings (TSX: FFH) for approximately C$1.7 billion.
The deal, which is subject to shareholder and regulatory approvals, marks a significant milestone for the nation’s leading mattress and bedding retailer. The acquisition would allow the company to leverage Fairfax’s extensive resources and expertise to further enhance its market position and drive innovation in the sleep products industry.
The offer price of C$35 per share represents a 28 per cent premium to Sleep Country stock’s close on Friday.
“We have concluded that this transaction is in the best interests of Sleep Country and is fair to our shareholders. Following a comprehensive assessment and our extensive negotiations with Fairfax, we are pleased to have reached an agreement that provides certainty of significant and immediate value to shareholders” Christine Magee, chair of the special committee of independent directors of Sleep Country that oversaw the negotiation of the transaction, said in a media release on this news.
Sleep Country CEO Stewart Schaefer expressed enthusiasm about the acquisition, noting that Fairfax’s long-term investment strategy aligns well with Sleep Country’s vision for future growth.
“We believe this partnership will provide significant benefits to our customers, employees, and shareholders,” he said. “With Fairfax’s support, we will continue to lead the industry in delivering high-quality sleep solutions.”
Prem Watsa, chair and CEO of Fairfax, highlighted the fit between the two companies. “Sleep Country is a well-established and highly respected brand in Canada,” Watsa said in a statement. “We are excited to work with their talented team to build on their success and explore new opportunities for expansion.”
The transaction is expected to close by Q4 2024, pending all necessary approvals. Further details about the integration plans and future initiatives are expected in the coming months.
Fairfax Financial Holdings has a diverse range of insurance and investment operations worldwide. With headquarters in Toronto, Fairfax is known for its disciplined investment approach and commitment to creating long-term value for its shareholders.
Founded in 1994, Sleep Country is Canada’s leading specialty sleep retailer operating under a range of retailer banners, including: Sleep Country Canada, Dormez-vous, the rest, Endy, Silk & Snow, Hush and the most recently acquired Casper Canada.
With omnichannel and e-commerce operations, more than 300 corporate-owned stores and 19 warehouses across Canada, the company offers a broad selection of mattresses, bedding and sleep accessories from top brands
Shares of Sleep Country Canada Inc. (TSX:ZZZ) last traded at C$27.28 per share and Fairfax Financial Holdings Ltd. (TSX: FFH) last traded at C$1,593.10 per share.
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(Top photo: Sleep Country Canada Inc.)