Pedestrians walk past a Sleep Country Canada store in Toronto, on Oct. 19, 2021.Evan Buhler/The Canadian Press
Sleep Country Holdings Inc. ZZZ-T shareholders have voted in favour of selling the business to Fairfax Financial Holdings Ltd. for $1.7-billion.
The mattress retailer says a majority of shareholders supported the deal which will see the financial holding company acquire all issued and outstanding common shares of Sleep Country for $35 per share.
Since announcing the deal in July, Sleep Country says it received an interim order from the Ontario Superior Court of Justice and an advance ruling certificate from the Commissioner of Competition, which allow it to move forward with the transaction.
Sleep Country expects the sale to close in its fourth quarter and says once the deal is complete, it will apply to have its common shares delisted from the Toronto Stock Exchange.
After the vote, CEO Stewart Schaefer told investors he was pleased they approved the agreement, which he says will unlock shareholder value.
He added that Fairfax is ready for the journey ahead of the business, even though macroeconomic headwinds pose challenges.