TORONTO, Oct. 22, 2021 /CNW/ - Sleep Country Canada
Holdings Inc. ("Sleep Country" or the
"Company") (TSX: ZZZ), Canada's leading omnichannel
specialty sleep retailer, today announced the closing of its
acquisition of a 52% stake in Hush Blankets Inc. ("Hush") for
$25 million (implied valuation of
$48 million). The completion of this
deal marks Hush's next phase of growth and the expansion of Sleep
Country's sleep ecosystem.
"This is an exciting day for Sleep Country as we welcome Hush
into our portfolio of innovative sleep brands," said Stewart Schaefer, President of Sleep Country
Canada. "Together, this is a powerful partnership that will drive
even more digital opportunities and further build out our portfolio
of innovative sleep products," added Schaefer.
"Today is an incredible milestone for our company as we join
forces with Sleep Country, Canada's leading omnichannel sleep retailer,"
said Lior Ohayon, Co-Founder of
Hush. "We are eager to start our next chapter, expand our product
line and keep pushing the boundaries of the sleep industry for the
benefit of customers around the world," Ohayon added.
"We are excited to close the deal today and
solidify this partnership with Sleep Country, a best-in-class
Canadian brand," said Aaron Spivak,
Co-Founder of Hush. "We're optimistic and enthusiastic to continue
our growth trajectory and deliver superior experiences to our
dedicated Hush community," added Spivak.
Hush will continue to operate as an independent entity led by
Ohayon and Spivak in their respective roles. Hush's board will be
comprised of the senior management of Sleep Country and
Hush.
PwC acted as exclusive accounting services advisor to Sleep
Country Canada, with Davies Ward Philips & Vineberg LLP serving
as legal counsel. DLA Piper (Canada) LLP served as legal counsel for
Hush.
About Sleep Country
Sleep Country is Canada's leading Omni channel specialty sleep
retailer with a national retail store network and robust eCommerce
platforms. The Company operates under three retail banners: "Sleep
Country Canada", with Omni channel operations in Canada excluding Québec; "Dormez-vous?" with
Omni channel operations in Québec and "Endy", Canada's leading direct-to-consumer online
sleep solutions retailer. As of October
22, Sleep Country has 287 stores, 17 fulfillment centres and
two storage hubs across Canada.
Sleep Country is a purpose-led company dedicated to transforming
lives by awakening Canadians to the power of sleep. The company is
committed to meaningfully and positively supporting its
environment, people and communities including operating a
comprehensive Mattress Recycling Program and working closely with
Canadian charities to donate new and gently used mattresses to
families and children in need.
About Hush
Hush is a Canadian-based sleep improvement
brand that was started in 2018 by Aaron
Spivak and Lior Ohayon. Hush
started with a product now considered to be Canada's Most Popular (and Reviewed) weighted
blanket - designed to help those with sleep, anxiety, insomnia,
ADHD, and more. Within its first 24 months, Hush has grown to an
8-figure brand. Since the beginning, Hush has been committed to
giving back by donating 1 blanket for every 10 sold. The company
launched a successful Kickstarter campaign that raised $1.5M+ in 30
days - making it the Top 10 most raised Canadian Campaign ever. In
2019, Hush also appeared on Canadian hit TV show Dragons' Den and
earned "Most Epic Pitch" of the season securing a bidding war
between all 6 dragons. The company has since expanded their product
line to include mattresses and sleep accessories, furthering their
mission of helping Canadians achieve a better night's rest.
For more information about Sleep Country Canada, visit
www.sleepcountryir.ca
For more information about Hush, visit www.hush.ca
Non-IFRS Measures and Retail Industry Metrics
The Company prepares its consolidated financial statements in
accordance with IFRS. In order to provide additional insight into
the business, to provide investors with supplemental measures of
its operating performance and to highlight trends in its business
that may not otherwise be apparent when relying solely on IFRS
financial measures, the Company uses certain non-IFRS measures,
including "Same Store Sales" or "SSS", "EBITDA", "Operating
EBITDA", "Operating EBITDA Margin", "Adjusted Net Income" and
"Adjusted EPS". These measures are provided as additional
information to complement IFRS measures by providing further
understanding of the Company's results of operations from
management's perspective. Management also uses non-IFRS measures in
order to facilitate operating performance comparisons from period
to period, to prepare annual operating budgets and forecasts and to
determine components of management compensation. The Company also
believes that securities analysts, investors and other interested
parties frequently use non-IFRS measures in the evaluation of
issuers.
Readers are cautioned that these non-IFRS measures are not
recognized under IFRS and do not have a standardized meaning
prescribed by IFRS. They are therefore unlikely to be comparable to
similarly titled measures presented by other publicly traded
companies. Accordingly, they should not be considered in isolation
nor as a substitute for analysis of the Company's financial
information reported under IFRS.
Forward-looking Information
This release contains forward-looking information and
forward-looking statements which reflect the current view of
management with respect to the Company's objectives, plans, goals,
strategies, outlook, results of operations, financial and operating
performance, prospects and opportunities. Wherever used, the words
"may", "will", "anticipate", "intend", "estimate", "expect",
"plan", "believe" and similar expressions identify forward-looking
information and forward-looking statements. Forward-looking
information and forward-looking statements should not be read as
guarantees of future events, performance or results, and will not
necessarily be accurate indicators of whether, or the times at
which, such events, performance or results will be achieved. All of
the information in this release containing forward-looking
information or forward-looking statements is qualified by these
cautionary statements.
Forward-looking information and forward-looking statements are
based on information available to management at the time they are
made, underlying estimates, opinions and assumptions made by
management and management's current good faith belief with respect
to future strategies, prospects, events, performance and results,
and are subject to inherent risks and uncertainties surrounding
future expectations generally. Such risks and uncertainties
include, but are not limited to, those described in the Company's
2020 Annual Information Form (the "AIF") filed on
March 2, 2021. A copy of the AIF can
be accessed under the Company's profile on SEDAR at www.sedar.com.
Additional risks and uncertainties not presently known to the
Company or that the Company currently believes to be less
significant may also adversely affect the Company.
The Company cautions that the list of risk factors and
uncertainties described in the AIF is not exhaustive and that
should certain risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual strategies,
prospects, events, performance and results may vary significantly
from those expected. There can be no assurance that the actual
strategies, prospects, results, performance, events or activities
anticipated by the Company will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, the Company. Readers are urged to
consider the risks, uncertainties and assumptions carefully in
evaluating the forward-looking information and forward-looking
statements and are cautioned not to place undue reliance on such
information and statements. The Company does not undertake to
update any such forward-looking information or forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable laws.
SOURCE Sleep Country Canada Holdings Inc. Investor Relations