Dive Brief:

• Mattress retailer Mattress Firm Holding Corp. said it will buy rival The Sleep Train, which operates 310 stores, for $425 million in a deal expected to close this year.

• Houston-based Mattress Firm will retain the Sleep Train name at those stores and Sleep Train’s headquarters will remain in Sacramento, CA.

• Post merger, Sleep Train CEO Dale Carlsen will assume the role of Mattress Firm vice chairman as well as president and chief strategy officer of the company.

Dive Insight:

This acquisition will give Mattress Firm a sweeping nationwide scope, adding several stores in California, Oregon, and other western states with little competition with each other in most areas. The merged company would operate more than 2,000 stores and could see some $2 billion in annual sales, while realizing some $20 million in savings after three years.