Sweet Dreams: Mattress maker close to £400m takeover

 
Helen Cahill
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Dreams was bought out of administration in 2013 (Source: Getty)

Mattress maker Dreams is tipped to sell to Chinese buyers for £400m.

Private equity firm Sun European Partners put the retailer up for sale at the start of this year and later brought in Rothschild to handle the sale as an auction.

Dreams was bought out of administration in 2013 by Sun European Partners, a move which saved 1,600 jobs at the retailer.

Read more: Hipster mattress maker Eve announces intention to float

Now, it is thought the Chinese memory foam giant MLily has made it into the first round of bids, along with King Koil China, a rival mattress firm.

South African conglomerate Steinhoff, owner of Bensons for Beds and Harveys, has also been connected with the sale, but has walked away due to competition worries.

Sun European Partners declined to comment.

The sale comes at a time of change for the mattress industry. In a strange revolution of the marketplace, mattresses are now becoming hipster homeware.


Eve Sleep plans to float this month (Source: Eve Sleep)

Eve Sleep, which makes hipster mattresses according to Scandinavian design principles, plans to float on the London Stock Exchange this month, in a bid to take the lead in its intense competition with Simba Sleep, the mattress firm backed by Henderson Global Investors and Numis Securities.

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