Mattress Firm Holding is soft on comfort. The bedding retailer owns and operates or franchises about 1,000 stores, primarily under the Mattress Firm name, in 26 states. It sells conventional (Simmons) and specialty (Tempur Sealy) mattresses, which together account for most of its sales, in addition to other brands. The company also sells bed frames and bedding accessories. From its humble beginnings in 1986 when three friends pooled their resources to purchase a downtrodden spot in a Houston strip center, the chain has grown into the top US bedding retailer. After raising about $105 million in an initial public offering in late 2011, the company bought Mattress Giant in 2012.
The acquisition, valued at about $47 million, gave Mattress Firm an additional 180 stores in seven markets across Texas and Florida, where the company has already built a strong foundation. The move made Mattress Firm the nation's largest specialty bedding retailer. As part of the transaction, the retailer plans to rebrand the Mattress Giant stores under the Mattress Firm banner and replace products sold across the Mattress Giant chain with its own items.
Mattress Firm was put on firm footing during the past year by going public, allowing its primary investor to cash out. The company, which initially sought to raise about $115 million, was taken public in November 2011 by its owner J.W. Childs Associates (JWC). (Most of the proceeds from the offering were used to repay more than $84 million in debt and fees to JWC.) The IPO came as the industry benefitted from economic improvements and pent-up demand for mattresses and related bedding products in the aftermath of the deep recession and housing crisis. In fiscal 2011 Mattress Firm's sales jumped 14% vs. the previous year, and it returned to profitability (after losing more than $4 million in 2010).
Besides being big in Texas, Florida, Georgia, and North Carolina, Mattress Firm continues to extend its reach across the country and enters new markets through franchising, the latest being Tulsa, Oklahoma; Johnson City, Tennessee; and Tyler, Texas. To set itself apart, the multi-brand mattress seller offers the Mattress Firm Red Carpet Delivery Service, which includes a three-hour delivery window and recently introduced its proprietary YuMe mattress. The temperature-controlled mattress uses ambient air to heat and cool the mattress surface.
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