Toronto-based mattress company Endy is being acquired by Sleep Country Canada for $89 million.
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.
Launched in 2015, Endy became well-known for its Endy mattress that shipped in a box the size of a hockey bag. The company—which only services Canada—has since released Endy Pillow, Endy Sheets, and The Endy Mattress Protector. Notably, Endy has said it hasn’t taken outside investment—except from former Blue Jays slugger José Bautista, who made an undisclosed minority investment in August 2018. At the time, the company said that it’s on track to surpass $50 million in annual sales this year.
“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.”
The acquisition of Endy is expected to help Sleep Country boost its ecommerce offering.
Co-founder and CEO Mike Gettis and Ruparell will remain in their respective roles. The Sleep Country and Endy businesses will be run separately, and general oversight of the Endy business will be provided by a board comprised of the senior management of Sleep Country and Endy. Ruparell will chair the board.
“Since starting Endy, our mission has been to help all Canadians get a better night’s sleep,” said Gettis. “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.”
The acquisition of Endy is expected to help Sleep Country boost its ecommerce offering and its bricks-and-mortar stores; Sleep Country currently has 264 stores across Canada.
“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.”