Sleep Country acquires bankrupt Sleep Number for $702M after court approval, creating the second-largest sleep retailer behind Somnigroup.
Sleep Country Canada won U.S. Bankruptcy Court approval Monday to acquire Sleep Number for $702 million. The transaction includes roughly $530 million in cash. Court documents show the deal is expected to close in about 10 days.
The Canadian retailer had an agreement to buy Sleep Number before the U.S. company filed for bankruptcy last month. Sleep Country's original offer was around $415 million.
Sleep Number's decline into bankruptcy wasn't halted by an investment from Travis Kelce. The Kansas City Chiefs star said he had "personally relied on" the adjustability of the company's mattresses. He bought a stake under 5% in January and signed on for a three-year advertising campaign.
Sleep Country CEO Stewart Schaefer called the deal a "game-changing acquisition." He pointed to Sleep Number's more than 1,000 patents as a key reason for the purchase. The merger combines Sleep Number's 570-plus U.S. stores with Sleep Country's 300-plus outlets across Canada.
The combined entity becomes the second-largest sleep retailer globally, behind Somnigroup International. Somnigroup carries a Mixed Alpha Score of 53 on the AlphaScala platform.
The U.S. Bankruptcy Court for the Southern District of New York approved the sale Monday.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.