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Tempur-Pedic announces acquisition of Canadian distributor
05 Apr '10
2 min read
Tempur-Pedic International Inc the leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide announced it had acquired its Canadian distributor, Tempur Canada, Inc.
Tempur Canada has become a wholly-owned subsidiary and will continue to provide the Canadian market with products from Tempur-Pedic. In 2009, Tempur-Pedic International reported net sales of approximately $9 million to Tempur Canada.
Chief Executive Officer Mark Sarvary commented, "Prior to the acquisition, Canada was the largest bedding market where we were represented by a third party distributor. The Canadian market is large and our share is relatively low. Tempur Canada has done a tremendous job of developing this market and has positioned the Tempur-Pedic brand for increased investment. We are committed to growing Canadian market share, and so we will increase our investments in advertising and sales initiatives which over time we believe will drive significant sales and earnings growth."
The acquisition follows similar transactions in Austria, Australia, China and New Zealand over the last four years.
Mr. Sarvary added, "We are pleased with the results we have experienced in driving sales growth and improved profitability from recently acquired markets. In 2010, we expect the Canadian acquisition will be modestly accretive to earnings."
The acquisition was effected through the Company's Dan-Foam ApS subsidiary, which is the Company's primary foreign subsidiary and holds the Company's interests in markets outside the U.S. The transaction closed on April 1, 2010. Financial terms were not disclosed. The Company intends to update its financial guidance when it announces its first quarter 2010 results on April 20, 2010.
Tempur Canada has become a wholly-owned subsidiary and will continue to provide the Canadian market with products from Tempur-Pedic. In 2009, Tempur-Pedic International reported net sales of approximately $9 million to Tempur Canada.
Chief Executive Officer Mark Sarvary commented, "Prior to the acquisition, Canada was the largest bedding market where we were represented by a third party distributor. The Canadian market is large and our share is relatively low. Tempur Canada has done a tremendous job of developing this market and has positioned the Tempur-Pedic brand for increased investment. We are committed to growing Canadian market share, and so we will increase our investments in advertising and sales initiatives which over time we believe will drive significant sales and earnings growth."
The acquisition follows similar transactions in Austria, Australia, China and New Zealand over the last four years.
Mr. Sarvary added, "We are pleased with the results we have experienced in driving sales growth and improved profitability from recently acquired markets. In 2010, we expect the Canadian acquisition will be modestly accretive to earnings."
The acquisition was effected through the Company's Dan-Foam ApS subsidiary, which is the Company's primary foreign subsidiary and holds the Company's interests in markets outside the U.S. The transaction closed on April 1, 2010. Financial terms were not disclosed. The Company intends to update its financial guidance when it announces its first quarter 2010 results on April 20, 2010.
Tempur-Pedic International Inc
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