Sleep Country Canada Holdings will be acquired by Fairfax Financial Holdings, offering significant shareholder value
Sleep Country Canada Holdings Inc. has announced that it has entered into an arrangement agreement with 16133258 Canada Inc., a new and wholly owned subsidiary of Fairfax Financial Holdings Limited.
Fairfax will acquire all issued and outstanding common shares of Sleep Country for $35.00 per share in cash, valuing the company at approximately $1.7bn. This price reflects a 34 percent premium to the 20-day volume-weighted average price and a 28 percent premium to the closing price on July 19.
Christine Magee, chair of the special committee of independent directors, stated, “This transaction serves the best interests of Sleep Country and is fair to our shareholders. After thorough assessment and negotiations with Fairfax, we have secured an agreement that offers significant and immediate value.”
Stewart Schaefer, president, and CEO of Sleep Country, expressed pride in the company’s accomplishments, saying, “This transaction highlights the value and strength of our brands. Partnering with Fairfax marks a new chapter where we will continue our strategic initiatives and promote the importance of sleep to Canadians.”
Prem Watsa, chair, and CEO of Fairfax, commented, “We are excited to welcome Sleep Country and its talented team led by Stewart Schaefer to the Fairfax family. Sleep Country is a leading sleep retailer in Canada with widely recognized brands. We aim to further develop this Canadian success story.”
The transaction will follow a court-approved plan of arrangement under the Canada Business Corporations Act and is expected to close in the fourth quarter of 2024. It requires shareholder, court, and regulatory approvals under the Competition Act (Canada).
The deal is not contingent on financing. Upon closing, Sleep Country will delist its common shares from the TSX and cease to be a reporting issuer under Canadian securities laws.
