Atlanta, Georgia - Mattress manufacturer Simmons Bedding Co. (SBC) has agreed to acquire Simmons Canada Inc. from SCI Income Trust for C$130 million ($116.6 million).
SBC, a subsidiary of Atlanta-based Simmons Co., plans to finance part of the acquisition with proceeds from its recently-completed sale of Sleep Country USA.
SBC sold its Canadian manufacturing rights in 1990 as part of a Canadian management-led buyout and does not currently own any units of SCI or any equity interest in Simmons Canada.
"We look forward to expanding upon the strong foundation that Simmons Canada has established within the Canadian marketplace," Charlie Eitel, SBC chairman and chief executive, said.
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