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Thursday, September 4, 2014

Mattress Firm to purchase Sleep Train to expand in West Coast, (NASDAQ: MFRM)

Mattress Firm Holding Corp said it would purchase privately held bedding retailer The Sleep Train Inc for $425 million, its sixth and largest acquisition announced in the past year, to expand its presence in the West Coast region.Shares of Mattress Firm, which also reported a better-than-expected quarterly profit, rose as much as 14 percent to an all-time high of $64.78 on Thursday.The company said it would also take on Sleep Train's liabilities of about $15 million.The acquisition will give Mattress Firm immediate scale and provide it a "clear runway for growth" in the highly populated West Coast region, where it has nominal presence, Chief Executive Steve Stagner said on a conference call.

Mattress Firm Holding Corp. (Mattress Firm) is a specialty retailer of mattresses and related products and accessories in the United States. Shares of MFRM traded higher by 12.19% or $6.925/share to $63.74. In the past year, the shares have traded as low as $29.29 and as high as $57.99. On average, 212861 shares of MFRM exchange hands on a given day and today's volume is recorded at 468215.