Sleep Country Canada acquires majority of Hush blankets
TORONTO – Sleep Country Canada Holdings, a leading omnichannel sleep retailer in Canada, acquires majority stake in Hush Blankets, a Canadian direct-to-consumer sleeping products retailer specializing in weighted blankets, pillows, sheets and his recently launched bed – boxed mattresses.
Sleep Country has agreed to acquire a 52% controlling interest in Hush for an initial amount of $ 25 million, or approximately 9 times Hush’s 12-month EBITDA as of September 30. Sleep Country will acquire the remaining 48% of Hush at 16% per annum. stake increments, effective March 31, 2023. Future payouts will vest at a multiple of up to 7x applied to Hush’s last 12-month EBITDA.
Subject to customary closing conditions, the transaction is expected to close on October 22.
Founded in 2017 by Lior Ohayon and Aaron Spivak, Hush launched its weighted blanket in 2018.
“We are delighted to welcome Hush to our portfolio of relevant brands, as we work strategically to expand our sleep assortment, diversify our omnichannel approach, and bring a world-class experience to all customers to support a better tomorrow through better nights, ”said Stewart. Schaefer, President of Sleep Country Canada. “We… look forward to supporting their expansion with our market knowledge, infrastructure and logistics capabilities. “
Hush will continue to operate as an independent entity led by Ohayon and Spivak in their respective roles. Hush’s board of directors will be comprised of senior management from Sleep Country and Hush.
PwC acted as exclusive accounting advisor to Sleep Country Canada, Davies Ward Philips & Vineberg LLP as legal counsel. DLA Piper (Canada) LLP acted as legal counsel for Hush.