1 Nov 2010

Sleepyhead buys into Australian bed business

6:19 pm on 1 November 2010

Sleepyhead has boosted its presence across the Tasman, buying two Australian bed businesses for $A55 million.

The Auckland-based company has bought Dunlop Foams and Sleepmaker from Pacific Brands.

As part of the deal, Pacific Brands will get Sleepyhead's carpet underlay unit, Wonderlay.

Pacific Brands says the sale will cut annual revenue by $A160 million and gross earnings by $A11 million.

Sleepyhead has 8% of the Australian bed market, compared with 55% in New Zealand.

The deal requires regulatory approval.