Endy, Canada's leading online mattress brand, announced it has signed an agreement with Sleep Country Canada Holdings Inc. ("Sleep Country" or "Sleep Country Canada") (TSX: ZZZ) to be acquired for approximately $89 million. This acquisition represents a landmark deal in Canadian e-commerce.
A groundbreaking partnership between Canadian leaders in sleep
Sleep Country has agreed to a deal valued at $88.7 million, a major win for the Canadian startup and e-commerce space. The deal is comprised of $63.7 million in cash to be paid at closing, and up to $25 million in cash to be paid in early 2021 based on the achievement of certain growth and profitability targets in 2020.
"We launched Endy as a disruptor in the Canadian e-commerce space three years ago, and this announcement today is a testament to the incredible dedication of the entire Endy team," said Rajen Ruparell, co-founder and Chairman of Endy and the company's majority shareholder. "This acquisition will allow Endy to continue to grow rapidly and exceed customer expectations in a rapidly evolving retail climate, while remaining separate."
"Since starting Endy, our mission has been to help all Canadians get a better night's sleep," said Mike Gettis, co-founder and CEO of Endy. "After getting to know the Sleep Country team, we can think of no better partner to help us achieve the dream we set out to accomplish when we founded Endy. By remaining a deeply rooted Canadian company, we can continue to scale our business and raise the bar even further as champions for our customers."
Canadian success story
Endy, launched in 2015, is one of Canada's fasting-growing startups and an innovator in the Canadian e-commerce space.
Following three years of exponential growth, Endy was named Canada's fastest growing retail company on the 2018 Startup 50 list, compiled by Maclean's and Canadian Business. The company has achieved this explosive growth while taking on very minimal external investment.
The brand's award-winning Endy Mattress has changed the way Canadians sleep. Engineered to offer the perfect balance of comfort and support, the Canadian-made Endy Mattress ships for free to every province in a box the size of a hockey bag. Designed to relieve pressure points, eliminate motion transfer, and release body heat faster than conventional foam, Endy has grown to become one of the leading online mattress brands in Canada.
Endy's expanded assortment includes The Endy Pillow, The Endy Sheets, and The Endy Mattress Protector.
With thousands of 5-star customer reviews, Endy has built a brand based on customer obsession and product innovation. Over the past three years, countless influential athletes, olympians, and notable Canadians have turned to Endy as their sleep surface of choice. This high-profile list includes the brand's first external investor, former Toronto Blue Jays star Jose Bautista, who announced his investment in the company this past August.
The brand's mission -- to help all Canadians get a better night's sleep -- extends beyond its customers. Endy has donated thousands of mattresses since launch to families and individuals in need across the country. To learn more about the company's charity partnerships and mattress donation program, visit endy.com/socialmission.
Rajen Ruparell (Founder and Chairman) and Mike Gettis (Founder and CEO), first met as high school students in Calgary. They founded Endy together in 2015 after each achieving individual entrepreneurial success.
Mike spent years developing expertise in business before launching his own entrepreneurial pursuits, building a number of successful digital-first brands.
Rajen, a serial entrepreneur, and most notably a co-founder of Groupon International via acquisition of his company Citydeal, has built and invested in a number of high-profile consumer brands in North America and Europe.
In three short years, Endy has experienced explosive growth with Rajen and Mike at the company's helm. Rajen (Chairman) and Mike (CEO) will remain active in the business in their respective roles.
Endy and Sleep Country to operate separately
The Sleep Country and Endy businesses will be run separately, encouraging the same competitive spirit that positioned both companies as leaders in their respective spaces. General oversight of the Endy business will be provided by a board comprised of the senior management of Sleep Country and Endy. Rajen Ruparell will Chair this board.
With a national footprint from coast to coast, Sleep Country has built a network of 264 conveniently located stores to service their customers' needs plus 16 strategically located distribution centres across Canada to provide a fast and convenient white glove home delivery service. The acquisition of Endy will enhance its existing e-commerce offering and complement Sleep Country's national store footprint and diverse selection of sleep products.
"Endy's original founders, Rajen Ruparell and Mike Gettis, two best friends from Calgary whose vision and drive built and supported the talented Endy team, will remain at the helm of the business, alongside all of their existing employees," said David Friesema, CEO of Sleep Country. "Their mission will remain the same, which is to continue to grow the Canadian market while harnessing the passion of their entrepreneurial culture in this very competitive industry."
"We are thrilled with today's announcement, and extend a very warm welcome to the entire Endy team," said Stewart Schaefer, Chief Business Development Officer at Sleep Country. "Endy is a true Canadian success story, and the company's leadership demonstrates entrepreneurship at its finest. Endy has built strong customer loyalty and a relevant Canadian brand in just three short years, positioning itself as market leader in a very competitive e-commerce space. We have watched and admired Endy's growth for the last three years and respect the work they have done to build and grow their business."