Bed retailer Dreams sold to Tempur for £340 million
BEDS seller Dreams has been bought by mattress maker Tempur Sealy in a deal for £340 million.
The takeover ends eight years of ownership for the brand by private equity giant Sun European Partners, which bought the business out of administration in 2013.
Dreams' current management team will remain in place and the retailer's 200 stores, which employ 2,000 staff, will continue to operate as a standalone entity, the new owners said.
Bosses said the deal will allow Dreams to continue its expansion, following six consecutive years of growth culminating in sales of £327m in 2020.
Mike Logue, chief executive of Dreams, said: "We are delighted to be joining the Tempur Sealy family. Today marks a milestone for Dreams.
"It is recognition of the transformation we have delivered, and is an endorsement of our customer-focused strategy, our culture and our values.
"With Tempur Sealy we expect to drive our growth strategy and build on our position as the most recommended, specialist bed retailer."
Tempur Sealy chairman and chief executive Scott Thompson said: "Dreams has created a strong brand and business model, known for its outstanding products and customer service."
He added: "This acquisition makes both organisations stronger, better positioned to service customers and bring innovative products to market.
"This transaction is consistent with our stated strategy of acquiring companies when we see their addition as mutually beneficial and accretive to long-term shareholder value. We expect over time to realise synergy opportunities and long-term sales growth."
Dreams collapsed into administration with the loss of 400 jobs and 90 stores closing in March 2013.
It was bought by Sun European Partners, which also at the time owned rival ScS, for £35m.
Paul Daccus, managing director at Sun European Partners, said: "We are very pleased that our extensive experience in enhancing operations and capitalising on new opportunities allowed us to achieve this positive outcome for Dreams and our investors."
Dreams was started in 1986 in Uxbridge, west London, by Mike Clare before expanding across the country.
He sold it in 2008 for £200m.