Sacramento-based Sleep Train is being sold.
Mattress Firm, which has its headquarters in Houston, Texas, is paying $425 million for Sleep Train's 310 stores in California, Oregon, Washington, Idaho, Nevada and Hawaii.
Mattress Firm says it will continue to operate under both brands and will keep the Sleep Train headquarters in Sacramento open, with CEO Dale Carlsen taking the post of President and Chief Strategy Officer after the acquisition is complete.
"This is just an extension on what we've already been planning on doing forever," Carlsen said. "It's a dream of mine to be a national mattress retail specialty shop, and now we're coast to coast, border to border."
Carlsen says the sale is a good deal for everyone involved.
"I am an independent guy, but when I see an opportunity that makes sense for my people and for everything, it's the right thing to do," he said.
Hear Carlsen's complete interview with KFBK: