Sleep Country gets friendly takeover bid
Sleep Country Canada president Christine Magee, seen here in a 2005 photo, has agreed to remain in her role with the company after the takeover.(PR Direct photo/Sleep Country Canada)
Sleep Country Canada said Thursday two Toronto-based investment firms have made a $356-million offer to buy the mattress retailer.
The friendly cash bid by Birch Hill Equity Partners Management Inc. and Westerkirk Capital Inc. for $22 for each unit of Sleep Country Canada Income Fund is 37.1 per cent above the Wednesday closing price of the units.
On Thursday, Sleep Country units jumped $5.83, or more than 36 per cent, to close at $21.88 on the TSX.
The board of trustees of Sleep Country has agreed to support the takeover bid. Unitholders must still vote on the offer.
Sleep Country has 133 corporate-owned stores under the Sleep Country Canada banner and 27 stores in Quebec under the Dormez-vous Sleep Centres Inc. banner. The income fund also owns Sleep America LLC, the largest mattress retailer in Arizona with 46 stores.
Christine Magee, the president of Sleep Country Canada and its face in its marketing campaigns, has agreed to remain in her role with the company after the takeover. Sleep Country Canada CEO Stephen Gunn has also agreed to remain.
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