Houston-based Mattress Firm is buying out its longtime Dallas-based competitor Mattress Giant and will become the largest mattress retailer in the U.S. The 38 Mattress Giant stores in the Dallas area will “virtually all” remain open and be converted to Mattress Firm stores later this year, the company announced Tuesday.
Mattress Firm, which operates 729 stores and is the first mattress retail chain to go national, said it is paying $47 million in cash and expects to close the transaction by the end of July.
With the acquisition, it’s adding 180 Mattress Giant stores primarily in Dallas, Houston and five major Florida markets. Mattress Firm already operates 240 stores in those cities, giving it a huge bump in market shares. A spokesman said that only a few stores may close.