Sleep Country Canada Holdings Inc. (TSX:ZZZ) agreed to acquire substantially all of the assets from Silk & Snow Inc. for CAD 43.5 million on December 20, 2022. Under the terms of the acquisition, Sleep Country will pay CAD 24.0 million in cash at closing and has agreed to pay up to an additional CAD 19.45 million in cash in early 2026 based on Silk and Snow achieving certain growth and profitability targets in aggregate for fiscal years 2023, 2024 and 2025. The transaction will be financed through Sleep Country's cash on hand and revolving credit facility.

Silk & Snow will operate as an independent entity within Sleep Country, led by Albert Chow as Chief Executive Officer and Kenneth Mo as Chief Operating Officer who both will join the Sleep Country's senior leadership team. The transaction is expected to close effective January 1, 2023. Stifel GMP acted as financial advisor to Silk & Snow.

Will Shaw, Mitchell L. Thaw, Kevin H. Yip of Fasken Martineau DuMoulin LLP acted as legal advisor to Silk & Snow. Jennifer Grossklaus, Daniel Pearlman, Zach Hershenfeld and Hafsah Qureshi of Davies Ward Philips & Vineberg LLP acted as legal advisor for Sleep Country Canada.