
Sun European to sell mattress retailer Dreams for $475m
Sun European Partners has agreed to sell portfolio ccompany Dreams to listed US company Tempur Sealy International.
The transaction price is roughly $475m – minus net debt and any working capital deficit – suggesting an EBITDA multiple of 6.3x based on its 2020 EBITDA of $75m.
The exit comes eight years after Sun European acquired the mattress company from administrator EY via Sun Capital Partners VI. The deal was estimated to be worth £35m.
Dreams CEO Mike Logue said in a statement that "delivering a customer-first strategy" had transformed the business.
The transaction is expected to close in the third quarter of 2021.
Company
Founded in 1985 and based in High Wycombe, Dreams is a retailer of beds and mattresses in the UK. The company sells its products online, as well as through a network of 200 shops.
It employs around 2,000 staff, and in 2020 had sales of $400m and EBITDA of roughly $75m. It hopes to generate sales of $450m in the first year post-acquisition.
People
Sun European Partners – Marc Leder (co-CEO, Sun Capital Partners); Paul Daccus (managing director).
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