Tempur Sealy to buy Dreams in $475m deal
US mattress and bedding manufacturer Tempur Sealy has agreed to buy UK bed retailer Dreams from Sun European Partners for around $475m.
The deal is expected to be accretive to Tempur Sealy's earnings per share by approximately $0.20 before synergies in the first year after the acquisition.
In the year to the end of December 2020, Dreams generated sales of about $400m and EBITDA of approximately $75m. In the first year post acquisition, the business is expected to generate annual sales of about $450m, Tempur Sealy said.
Dreams will be operated as an independent business unit and led by the current management team.
Tempur Sealy chairman and chief executive Scott Thompson said: "Dreams has created a strong retailer brand and business model, known for its outstanding products and customer service. 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 organisations to service customers and bring innovative products to market. We look forward to welcoming the entire Dreams organization to the Tempur Sealy family."
The transaction is expected to close in the third quarter.