UK bed and mattress retailer Dreams is to be acquired by the world's largest bedding provider Tempur Sealy International (TPX) from Sun European Partners LLP, for an expected purchase price of approximately £340m.
Dreams’ management team will stay in place, led by Mike Logue who was appointed in 2013. Dreams will continue its day-to-day operations.
With 2000 employees across the UK, Dreams sells 11,500 mattresses, bases and headboards each week to customers nationwide through its network of over 200 stores and online. It makes all of its own-brand mattresses at its factory in Oldbury, UK, and currently makes 290,000 mattresses and over 160,000 divan bases a year, before delivering to customers across the UK through its 11 delivery centres and fleet of 140 vehicles.
The sale is a significant moment for the business, and a marker of the turnaround journey it has been on over the last eight years. Dreams has delivered six years of consecutive growth and generated sales of approximately £327m (excluding VAT) in 2020.
Tempur Sealy says its support and expertise will enable Dreams to continue this journey, driving its growth plans over the coming years.
CEO Mike Logue comments: “We are delighted to be joining the Tempur Sealy family. 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. Together we will continue to improve what we make, sell and deliver, to provide better sleep for all our customers.”
Tempur Sealy International, Inc chairman and CEO Scott Thompson says: "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 demonstrating best-in-class web marketing and sales capabilities. This acquisition makes both organisations stronger, better positioned to service customers and bring innovative products to market. We look forward to welcoming the entire Dreams organisation to the Tempur Sealy family."
Paul Daccus, MD, Sun European Partners, LLP, adds: “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 realise synergy opportunities and long-term sales growth. Our work with Dreams underscores our strength in partnering with outstanding management teams to accelerate value creation. We are very pleased that our extensive experience in enhancing operations and capitalising on new opportunities allowed us to achieve this positive outcome for Dreams and our investors.”
The transaction is expected to close in Q3 2021, subject to FCA approval.