Tempur Sealy To Acquire Specialty Bed Retailer Dreams - Quick Facts

(RTTNews) - Tempur Sealy International, Inc. (TPX) announced an agreement to acquire Dreams, a specialty bed retailer in the United Kingdom, primarily from an affiliate of Sun Capital Partners, Inc. The transaction price is approximately $475 million, less net debt and any working capital deficit.

Tempur Sealy expects this transaction to be accretive to its earnings per share by approximately $0.20 before synergies and to generate annual sales of approximately $450 million in the first year post-acquisition.

After the transaction closes in the third quarter of 2021, Tempur Sealy's annualized worldwide direct-to-consumer business is expected to reach $1 billion in sales and its international segment will represent over 20% of consolidated sales.

Dreams generated sales of approximately $400 million and EBITDA of approximately $75 million for the year ending December 31, 2020.

Tempur Sealy plans to operate Dreams as an independent business unit and led by the current management team.