Mattress Firm Holding, the nation’s largest specialty mattress retailer, has completed its acquisition of all the outstanding equity interests in HMK Mattress Holdings, the holding company of Sleepy’s and related entities, for an aggregate purchase price of $780 million, subject to working capital and other customary adjustments.

Sleepy’s is the nation’s second largest specialty mattress retailer, with over 1,050 stores in 17 states in the Northeast, New England, the Mid-Atlantic and Illinois.

The company also entered into an amended $865 million senior secured credit facility with Barclays Bank, J.P. Morgan Securities, Merrill Lynch and Wells Fargo Securities, as joint bookrunning managers and joint lead arrangers.

The senior secured credit facility is comprised of (i) an amended asset based revolver of $200 million that includes a sublimit for letters of credit and swingline loans, subject to certain conditions and limits, and (ii) an incremental term loan borrowing of $665 million. The amended asset based revolver will mature on the fifth anniversary of closing, and the incremental term loan will mature along with the company’s existing term B loan in October 2021.

Barclays acted as exclusive financial advisor to Mattress Firm and provided a fairness opinion to the company. Norton Rose Fulbright acted as legal counsel to Mattress Firm in connection with the transaction. Morgan Stanley acted as exclusive financial advisor to Sleepy’s. Gibson, Dunn & Crutcher acted as legal counsel to Sleepy’s in connection with the transaction.