HOUSTON - Fast-growing bedding retailer Mattress Firm has agreed to acquire Mattress Source, a 28-store bedding specialty chain based in Charlotte, N.C.
The deal, which is valued at about $11.2 million, will result in Mattress Source's stores in North Carolina and South Carolina being converted to Mattress Firm.
Mattress Firm said it expects the transaction to close by the end of its fiscal year on Jan. 31. It will be funded by cash reserves and borrowings from its revolving credit line, the company said.
The deal is Mattress Firm's third major acquisition this year. In September, it paid $13.2 million for the 29-store Mattress XPress chain in Georgia and Florida, and spent about $47 million in April to buy 180 Mattress Giant stores in Florida and Texas.