Sleep County Canada is acquiring full ownership of DTC mattress brand Casper’s operations and assets in Canada.

Sleep Country will pay $20.6 million USD to acquire Casper. It will also receive a $4.5 million USD marketing transition fee from Casper over the next four years and receive warrants that would convert into a ~1% stake in Casper. Sleep Country has also invested $20 million USD into five-year convertible notes that will have the option of converting into an additional 5% of Casper shares.

The move follows Sleep Country and Casper’s exclusive retail and digital partnership in Canada announced in 2021, said to leverage Sleep Country’s knowledge of the Canadian mattress consumer with Casper’s sleep innovations to partner and products designed exclusively for the Canadian market.

“We are thrilled to expand upon our retail journey by partnering up with one of North America’s top sleep retailers,” says Emilie Arel, CEO of Casper Sleep. “Sleep Country has been a retail mattress legacy for almost three decades, and sharing best practices with this leading retailer only helps accelerate our expertise and rapid growth in the retail omnichannel space.”

New York-based Casper, one of the first major DTC disruptors, came to Canada in 2014. In addition to its online business, it also began rolling out some of its products to host retailers to drive trial, like Hudson’s Bay, EQ3 and Indigo, before eventually planting roots in a couple of its own Canadian brick-and-mortar locations.

“We are very excited to acquire 100% of Casper’s Canadian retail business, who invested over $1 billion globally to build a leading brand that elevated the importance of a good night’s sleep for all,” says Stewart Schaefer, president and CEO of Sleep Country. “With their omnichannel business, and their mission to deliver a frictionless and elevated sleep retail experience, they align perfectly with our strategic omnichannel journey that began 4 years ago.”

Canadian mattress-in-a-box company Endy was acquired by Sleep Country Canada in a deal valued at $88.7 million, finalized in the spring of 2021.

According to Schaefer, the Casper purchase, combined with Endy, and its portfolio of brands such as Tempurpedic, Sealy, Kingsdown and others, reinforces Sleep Country’s 29-year brand statement of “Why buy a mattress anywhere else?”

Last fall, the sleep retailer targeted students linking a healthy night’s rest with school success. Its “Mattresship,” gave post-secondary students a new mattress instead of tuition funds in a campaign pushed through TikTok content creators.

Sleep Country operates under the retailer banners; Sleep Country Canada, Dormez-vous, Endy, Hush and its recently acquired, better-for-the-planet Canadian brand Silk & Snow.