Fri, 28 May 2021 | BUSINESS SALE
UK-based bedding retailer Dreams is set to be sold by Sun European Partners to US group Tempur Sealy for around £340 million. The fee is approximately a 12x multiple of the firm’s most recently reported post-tax profits of £28.3 million.
The acquisition comes following a successful turnaround that the retailer has undertaken since the appointment of CEO Michael Logue in 2013. Since it began its turnaround, the company has recorded six consecutive years of growth, with sales last year said to have reached around £327 million.
No job losses or store closures will be made as a result of the acquisition and the retailer’s management team will remain in place, headed by Michael Logue. Day-to-day operations will continue and the company said it remained committed to its current strategy.
Regarding the sale, Michael Logue commented: “Today marks a milestone for Dreams. 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. I would like to take this opportunity to thank our 2000 colleagues for their hard work, dedication and commitment.”
Scott Thompson, CEO of Tempur Sealy, added: “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.”
“This acquisition makes both organizations stronger, better positioned to service customers and bring innovative products to market.”
Thompson continued: “This transaction is consistent with our stated strategy of acquiring companies when we see their addition as mutually beneficial and accretive to long-term shareholder value. We expect over time to realize synergy opportunities and long-term sales growth.”
Dreams produces its own-brand mattresses from a factory in Oldham and makes around 11,500 sales each week. The business has a network of more than 200 stores as well as an ecommerce operation. It delivers to customers from 11 delivery centres and has a fleet of 140 vehicles.
The acquisition, which remains subject to FCA regulatory approval, is expected to complete in the third quarter of 2021.
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