Sacramento-based Sleep Train Inc. is being sold for $425 million to Houston-based Mattress Firm.Sleep Train runs approximately 310 retail stores in California, Oregon, Washington, Idaho, Nevada and Hawaii. Mattress Firm Holding Corp. has more than 1,500 company-run and franchised stores in 36 states. Its brands include Sealy, Serta and Tempur-Pedic.Watch report here: Sleep Train sold to Texas company for $425 millionAs part of the deal announced Thursday, Houston-based Mattress Firm said that it will also assume certain additional liabilities totaling about $15 million.It plans to continue operating under both the Mattress Firm and Sleep Train brands and will keep privately held Sleep Train's corporate headquarters in Rocklin.Sleep Train CEO Dale Carlsen will become president and chief strategy officer after the acquisition is complete. He will also become Mattress Firm's vice chairman."For our future, it is an incredible opportunity for us to grow," Carlsen told KCRA 3's Mike TeSelle on Thursday.Carlsen said he also does not foresee any major changes to jobs in the area."We are an employee-owned company right now. Our employees benefit huge from this. They own 25 percent of this company. That means they have 25 percent of this deal," Carlsen said.Sleep Train chief operating officer Rob Killgore will become co-COO, sharing the post with current Mattress Firm COO Ken Murphy.The deal is targeted to close by the fiscal fourth quarter's end. Both companies' boards have unanimously approved the transaction."This brand is so solid here and so important. It's how do we deliver to the consumer in the best way," Carlsen said.KCRA's Mike TeSelle contributed to this report.

Sacramento-based Sleep Train Inc. is being sold for $425 million to Houston-based Mattress Firm.

Sleep Train runs approximately 310 retail stores in California, Oregon, Washington, Idaho, Nevada and Hawaii. Mattress Firm Holding Corp. has more than 1,500 company-run and franchised stores in 36 states. Its brands include Sealy, Serta and Tempur-Pedic.


Watch report here: Sleep Train sold to Texas company for $425 million

As part of the deal announced Thursday, Houston-based Mattress Firm said that it will also assume certain additional liabilities totaling about $15 million.

It plans to continue operating under both the Mattress Firm and Sleep Train brands and will keep privately held Sleep Train's corporate headquarters in Rocklin.

Sleep Train CEO Dale Carlsen will become president and chief strategy officer after the acquisition is complete. He will also become Mattress Firm's vice chairman.

"For our future, it is an incredible opportunity for us to grow," Carlsen told KCRA 3's Mike TeSelle on Thursday.

Carlsen said he also does not foresee any major changes to jobs in the area.

"We are an employee-owned company right now. Our employees benefit huge from this. They own 25 percent of this company. That means they have 25 percent of this deal," Carlsen said.

Sleep Train chief operating officer Rob Killgore will become co-COO, sharing the post with current Mattress Firm COO Ken Murphy.

The deal is targeted to close by the fiscal fourth quarter's end. Both companies' boards have unanimously approved the transaction.

"This brand is so solid here and so important. It's how do we deliver to the consumer in the best way," Carlsen said.

KCRA's Mike TeSelle contributed to this report.