Money under the mattress: Sleep Country Canada to be bought in $1.7B deal

Insurance-focused conglomerate Fairfax Financial connected Monday agreed to bargain retailer Sleep Country Canada Holdings successful a woody weighted astatine C$1.7 cardinal ($1.24 billion).

The connection value of C$35 per stock represents a 28 per cent premium to Sleep Country stock’s past close. The company’s shares person risen 6.5 per cent truthful acold this twelvemonth arsenic of Friday.

The woody will thief Fairfax grow its non-insurance operations and comes months aft a conflict pinch short-seller Muddy Waters Research.

Founded successful 1985 by Canadian-Indian billionaire Prem Watsa, who is known arsenic “Canada’s Warren Buffett,” Fairfax is engaged successful spot and casualty security and reinsurance.

Sleep Country, which sells mattresses, pillows and sheets, operates 307 corporate-owned stores and 18 warehouses crossed Canada, while besides having an e-commerce operation.

CIBC Capital Markets and Blair Franklin Capital Partners advised nan typical committee of independent board that oversaw nan deal.

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