Toronto – Canadian sleep retailer Sleep Country Canada Holdings will be acquired by Fairfax Financial Holdings Ltd. in a proposed deal valued at C$1.7 billion.
Once complete, the deal will take the 307-store retailer private and its shares delisted from the Toronto Stock Exchange.
According to the company, the purchase price represents a 34% premium to the 20-day volume-weighted average price of the Sleep Country Canada’s common shares for the period ending on July 19 and a 28% premium to the closing price on that date.
“We have concluded that this transaction is in the best interests of Sleep Country and is fair to our shareholders. Following a comprehensive assessment and our extensive negotiations with Fairfax, we are pleased to have reached an agreement that provides certainty of significant and immediate value to shareholders,” said Christine Magee, chair of the special committee of independent directors of Sleep Country that oversaw the negotiation of the transaction.
The deal is expected to close in the fourth quarter following a court approved plan of arrangement under the Canada Business Corp. Act. The acquisition is subject to customary conditions, including the shareholder and court approvals, and regulatory approval under the Competition Act in Canada.
“I am extremely proud of the accomplishments of our team,” said Stewart Schaefer, president and CEO of Sleep Country. “This transaction clearly demonstrates the value and strength of our brands and organization. We look forward to partnering with Fairfax in this new chapter of Sleep Country where we can continue to execute on our strategic initiatives and transform lives by awakening Canadians to the power of sleep.”
Prem Watsa, chairman and CEO of Fairfax, said Fairfax looks forward to working with Schaefer and the entire Sleep Country Canada team.
“Sleep Country is Canada’s leading sleep retailer with brands that are recognized by all Canadians,” Watsa said. “We look forward to working with Stewart and the entire Sleep Country team to further develop this remarkable Canadian success story over the long term.”