Sleep Country is the largest mattress retailer in Canada. At the time of Birch Hill’s investment, Sleep Country had 159 stores throughout Canada and operated the Sleep America banner in Arizona.
Birch Hill saw an opportunity to create value by supporting the management team on the execution of a plan that included significantly growing the company’s presence in Quebec, selectively adding in-fill stores across Canada, stabilizing the Arizona business, and extending Sleep Country’s product lines.
ROI – Birch Hill completed the privatization of Sleep Country in September 2008, during the midst of the financial crisis, for a total purchase price of $370 million. Over a seven-year hold period, earnings more than doubled and the company generated a significant amount of cash flow. Sleep Country re-entered the public markets via an IPO in 2015. Birch Hill fully exited its investment in Sleep Country in 2016.