Fairfax Financial to acquire Sleep Country for $1.7 billion

financialpost.com:

TORONTO — Sleep Country Canada Holdings Inc. says it has agreed to be sold to Fairfax Financial Holdings Ltd. for around $1.7 billion.

The deal would see a subsidiary of the financial holding company acquire all issued and outstanding common shares of Sleep Country for $35 per share.

The sale is expected to close in the fourth quarter of 2024, subject to court approval and other customary conditions. Once completed, Sleep Country says it will apply to have its common shares delisted from the Toronto Stock Exchange.

Shares of Sleep Country closed at $27.28 on Friday.

Sleep Country chief executive Stewart Schaefer says the transaction “clearly demonstrates the value and strength of our brands and organization.”

The company’s co-founder Christine Magee, who chaired a special committee of independent directors that oversaw the negotiation, says the deal provides “certainty of significant and immediate value to shareholders.”

Prem Watsa, chairman and chief executive of Fairfax, says Fairfax looks forward to working with Schaefer and the entire Sleep Country team “to further develop this remarkable Canadian success story over the long term.”