Sleepyhead, New Zealand-based bed maker is in the process of buying Australian flexible foam manufacturer Dunlop Foams. It is also going to takeover bedding manufacturer Sleepmaker from Australian firm Pacific Brands. The total worth of the deal is $NZ70.8 million while the carpet business will come to Sleepyhead for a very nominal amount.

While talking about the deal, Sleepyhead joint managing directors Graeme and Craig Turner said that Australia has become a key market for them and so as to meet the needs they are going to boost up the production. These acquisitions are in line with that plan. A study of the company's strategy has shown that it is following the inorganic growth path for the past 18 months for expanding.

This is being done so that both size and scale are added in one go. Meanwhile, Pacific Brands said that it is going to sell Dunlop and Sleepmaker since they are not part of the company's long term strategy, The two companies are getting it a good commercial viable. However, the transaction is still awaiting approval from Australian Competition & Consumer Commission.