Mattress Firm says it will buy Sleepy's for $780M

HOUSTON - Mattress Firm has announced plans to buy competitor Sleepy's for $780 million.

Mattress Firm said Monday that it expects to complete the purchase by mid-2016 pending regulatory approval.

The Houston-based company has 2,400 stores in 41 states and expects about $2.5 billion in revenue in its current fiscal year.

After buying Sleepy's, Mattress Firm said it will have about $3.6 billion in annual sales and 3,500 stores.

Sleepy's is owned by HMK Mattress Holdings. Most of its stores are in the Northeastern and mid-Atlantic U.S.

Mattress Firm Holding Corp. on Monday also reported preliminary results from its fiscal third quarter. It expects to post adjusted profit of 80 to 82 cents per share, with sales rising 51 percent to $699.5 million.