Money under the mattress: Sleep Country Canada to be bought in $1.7B deal
Insurance-focused conglomerate Fairfax Financial on Monday agreed to buy retailer Sleep Country Canada Holdings in a deal valued at C$1.7 billion ($1.24 billion).
The offer price of C$35 per share represents a 28 per cent premium to Sleep Country stock’s last close. The company’s shares have risen 6.5 per cent so far this year as of Friday.
The deal will help Fairfax expand its non-insurance operations and comes months after a clash with short-seller Muddy Waters Research.
Founded in 1985 by Canadian-Indian billionaire Prem Watsa, who is known as “Canada’s Warren Buffett,” Fairfax is engaged in property and casualty insurance and reinsurance.
Sleep Country, which sells mattresses, pillows and sheets, operates 307 corporate-owned stores and 18 warehouses across Canada, while also having an e-commerce operation.
CIBC Capital Markets and Blair Franklin Capital Partners advised the special committee of independent directors that oversaw the deal.
Read more on globalnews.ca
