Furniture Today,
ATLANTA — Bedding major Simmons has agreed to acquire its northern cousin, Simmons Canada, for C$130 million or


C$16.25 per share, about a 30% premium over the company’s closing price yesterday on the Toronto Stock Exchange.

“We are thrilled with the prospects of welcoming Simmons Canada back into the Simmons family and expanding our North American market position,” said Charlie Eitel, chairman and CEO of Simmons U.S., based in Atlanta.

Simmons had sold the Canadian rights to manufacture and sell its products to a group led by Simmons Canada management in 1990. The Canadian company has been a licensee since then and has “continued to work closely with the Simmons U.S. team,” said Terry Pace, president and CEO of Simmons Canada.

Simmons Canada said a committee of its independent directors reviewed the proposed buyout, and that the company’s board has recommended that unitholders of its owner, SCI Income Trust, approve the deal.

SCI had planned to convert into a modern trust-on-partnership structure, a move that unitholders approved in May. But with the proposed buyout, that conversion won’t take place, the company said.

A meeting of unitholders to consider the buyout is set for Nov. 14, and the deal is subject to approval by a two-thirds majority. Pending approval, the deal is expected to close in November.