Sleep Country Canada to Be Acquired for $1.7 Billion

Sleep Country Canada Holdings Inc. has announced a definitive agreement to be acquired by a subsidiary of Fairfax Financial Holdings Limited for approximately $1.7 billion, with shareholders set to receive C$35 per share. This purchase price reflects a 34% premium over the 20-day volume-weighted average price and a 28% premium over the closing price on July 19, 2024. The deal is expected to close in the fourth quarter of 2024, pending court approval and other customary conditions, after which Sleep Country plans to delist its shares from the Toronto Stock Exchange. Both the company’s president, Stewart Schaefer, and co-founder, Christine Magee, expressed confidence in the transaction, citing its benefits for shareholders and the potential for growth under Fairfax's ownership. Prem Watsa, chairman of Fairfax, also emphasized the company's commitment to enhancing Sleep Country’s operations and brand value. This acquisition marks a significant transition for the 307-store retailer, which has been a prominent player in the Canadian mattress market since its founding in 1994.