Unlisted New Zealand bed manufacturer Sleepyhead has bought two Pacific Brands business units in Australia for $A55 million.Sleepyhead said the move was part of is expansion into the highly competitive Australian bed manufacturing market.The deal, which i
Unlisted New Zealand bed manufacturer Sleepyhead has bought two Pacific Brands business units in Australia for $A55 million.
Sleepyhead said the move was part of is expansion into the highly competitive Australian bed manufacturing market.
The deal, which is subject to regulatory approvals, will see Sleepyhead take up Pacific Brand’s Sleepmaker bedding business, including the Simmons and Dunlopillo brands and flexible foam manufacturer, Dunlop Foams.
These manufacturing operations will be added to the company’s existing businesses in Australia which include the Sleepyhead, Wonderest, Latex Gold, Design Mobel and Serta brands.
As part of the transaction, Sleepyhead will sell its Wonderlay carpet underlay business to Pacific Brands.
The kiwi bed maker recently celebrated its 75th anniversary in New Zealand and announced that its focus was on expansion in the Australian market, where it has made beds since 1996.
Sleepyhead had been working for the past 18 months to identify a key strategic acquisition that would provide the size and scale for its expansion plans.
The company, which is owned by the Turner family, plans to open a $35 million bed making plant in Melbourne in December.
Pacific Brands said Dunlop Foams and Sleepmaker are not part of Pacific Brands' long-term strategic focus.
“The acquisition of Wonderlay will be a good addition to Pacific Brands' leading carpet underlay business, Dunlop Flooring,” Pacific Brands said.
The company’s shares last traded on Friday at $A1.08.
