UK mattress firm Dreams is set to be snapped up by bedding company Tempur Sealy International, in a deal worth £340m ($482m).
On Thursday, the American company agreed to acquire the chain from Sun European Partners in an attempt to help it almost double international sales.
As part of the agreement, Dreams, which has around 2,000 employees in Britain, will keep its current management team in place, led by chief executive Mike Logue.
The transaction is expected to close in the third quarter of this year, and the company will continue its day-to-day operations.
Dreams makes all of its own-brand mattresses at its factory in Oldbury. It sells approximately 11,500 mattresses, bases and headboards per week, both in its 200 physical stores and online.
The company collapsed into administration in 2013, with the loss of 400 jobs and 90 stores closing on the back of the news. An affiliate of Sun European Partners bought the retailer for £35m shortly after, which also owned rival ScS at the time.
Last year, Dreams recorded sales of £327m, excluding VAT, its sixth consecutive year of growth.
“Today marks a milestone for Dreams,” Mike Logue said. “It is recognition of the transformation we have delivered, and is 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.”
Tempur Sealy said its support and expertise will enable Dreams to continue this journey, driving its growth plans over the coming years.
Scott Thompson, Tempur Sealy International’s chief executive, said: "Dreams has created a strong brand and business model, known for its outstanding products and customer service. We have partnered with Dreams for many years and they are one of the most talented retailers we work with, consistently demonstrated best-in-class web marketing and sales capabilities.”
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