Sleep Country to buy Casper's Canadian operations for $20.6 million

Pedestrians walk past a Sleep Country Canada store on Yonge Street in Toronto on October 19, 2021. THE CANADIAN PRESS/Evan Buhler

TORONTO -

Sleep County Canada Holdings Inc. announced Monday it will acquire Casper Sleep Inc.'s Canadian operations.

Toronto-based mattress retailer Sleep Country will pay US$20.6 million for the U.S. mattress-in-a-box company's Canadian assets.

Sleep Country will receive a US$4.5 million marketing transition fee from Casper over the next four years and three-year warrants which would convert into a one per cent stake in Casper.

Sleep Country president and CEO Stewart Schaefer said Casper invested more than US$1 billion globally "to build a leading brand that elevated the importance of a good night's sleep for all."

"We look forward to growing Casper's brand in Canada to make the newest member of our family of brands more accessible to all Canadians in a seamless manner that will exceed our growing customer expectations," Schaefer said in a press release.

He said the company is excited to work with Casper as it continues executing its long-term strategic growth plan.

Casper CEO Emilie Arel said sharing best practices with Casper will help accelerate Sleep Country's growth in omnichannel retail.

Sleep Country said it has also invested US$20 million in five-year convertible notes, which can be converted into about five per cent of Casper shares.

The deal comes as the number of e-commerce companies selling compressed and rolled mattresses in boxes that ship directly to customers has soared in recent years.

Sleep Country bought online mattress firm Endy for $88.7 million in 2018.

This report by The Canadian Press was first published April 10, 2023.