Dreams sold to Tempur Sealy in £340m deal

The retailer is being sold by turnaround specialist private equity firm Sun European Partners as it enters its next stage of growth.

Dreams’ management team including chief executive Mike Logue, who has led the business since 2013, will remain in place and it will be operated as a standalone independent business unit.

The sale is a significant step for Dreams, which has been on a turnaround journey for the past eight years.

The retailer has recorded six years of consecutive growth, most recently reporting sales of £327m excluding VAT in 2020, and said it hopes Tempur Sealy’s expertise will aid them on this growth trajectory.

Dreams operates more than 200 stores across the UK and employs 2,000 people.

Logue said: “We are delighted to be joining the Tempur Sealy family. Today marks a milestone for Dreams. It is recognition of the transformation we have delivered and is an endorsement of our customer-focused strategy, our culture and our values. 

“With Tempur Sealy we expect to drive our growth strategy and build on our position as the most recommended, specialist bed retailer.

“I would like to take this opportunity to thank our 2,000 colleagues for their hard work, dedication and commitment. Together we will continue to improve what we make, sell and deliver, to provide better sleep for all our customers.”

Tempur Sealy chair and chief executive Scott Thompson added: “Dreams has created a strong brand and business model, known for its outstanding products and customer service. We have partnered with Dreams for many years and they are one of the most talented retailers we work with, consistently demonstrated best-in-class web marketing and sales capabilities.

“This acquisition makes both organisations stronger, better positioned to service customers and bring innovative products to market. We look forward to welcoming the entire Dreams organisation to the Tempur Sealy family.”

• Mike Logue is one of the leaders featured in the Retail 100 2021 – find out who else made the ranking of the most influential people in retail here