Dreams boss Mike Logue: ‘Tempur deal will take industry to next level’

After eight years under turnaround private equity firm Sun Capital Partners, Dreams has been sold to Tempur Sealy for £340m in a deal that will bring two industry leaders together.

Dreams has been on a path to improve profitability since 2013, when it tumbled into administration, and has achieved growth every year for six years in a row.

To achieve this, boss Mike Logue brought in a strategy that included replacing all products, bringing manufacturing in house and introducing a customer listening app, Pillow Talk, which has helped it better cater to customers’ needs.

Logue told Retail Week that the deal with Tempur Sealy makes perfect sense as they can share their expertise to improve the industry in general.

Logue said: “This deal works so well for us. We regained the number-one UK position about three years ago and we’re now joining the number-one in this space. Tempur is, without a shadow of a doubt, the world-leading manufacturer and bedding company. 

“Our factory is very good – we’ve got less than 1% quality returns coming out of it – but we can improve and invest in machinery that Tempur develops. We’re looking to improve efficiency there. They obviously move a lot of mattresses around a lot of spaces around the world, so they can help with distribution. We can help them with retail skills. I think they recognise that we’re the best retailer in the world at mattress-selling.

“The synergies will help Dreams move to a new level now. Sun Capital has done a fantastic job, we’ve never had any debt – we’ve had a really strong partnership with them – and they really respected the strategy, and now is just the right time.”

While the for-sale sign has been raised in theory over Dreams since 2017, Logue said that now is the right time for Sun Capital to exit after a successful turnaround and a new partnership to unfold.

Logue added: “The key change for me is that we can have more conversations about the industry with our owners. When we’re talking to them, we will be able to debate and discuss improvements in the industry and how we can take things to another level, make better products and help people sleep better.

“That’s more than just a tagline, it’s our internal vision – and Tempur has a very similar tagline. The changes you’re going to see is us going after the whole market, improving our efficiency in manufacturing and distribution, and I genuinely look forward to more conversation about the industry we’re in and learning what’s happening around the globe. I think it’s a fantastic home for our organisation.”