Dreams of Dreams - Chinese rivals battle for British store

 
 

The Dreams store in Warrington, UK. Photo credit - Dreams

 

Two Chinese rivals are battling against each other to buy UK specialist bed and mattress manufacturer Dreams.

 

The companies involved are Mlily and King Koil China, two of the largest mattress makers in China.

Their target, Dreams, was put-up for sale by it's current owner Sun Capital earlier in 2017.

The two Chinese companies are set to be bidding not just against each other, but also another UK company, Silentnight. 

Does this suggest another example of the growing positive relationship between China and the UK, as was suggested at the recent Belt and Road forum in Beijing?

 

Bids for Dreams could exceed £400 million, with the company being seen as an attractive prospect for buyers.

In their financial results for the year of 2016, Dreams posted record results with an annual increase in sales of 20 percent, a profit of £32 million (136 percent higher than 2015) and a full repayment of the initial cash injection made by Sun Capital.

Speaking at the time about the prospects of the company, Mike Logue, CEO of Dreams, commented:

“2016 was a pivotal year for Dreams, building on the last three years of growth. Our significant investment, matched by the incredible efforts of our 1,850 colleagues across the UK in our factory, our 181 shops and our delivery centres have enabled us to achieve these record results.

“We attribute this performance to our continued determination to make, sell and deliver the most comfortable beds, provide market leading quality, value and choice and to always put our customers first. I want to thank everyone at Dreams for their passion, hard work and dedication over the year.

“Whilst potential future challenges to the UK consumer economy are well documented, we are confident that we will continue to successfully execute our strategy and that it will be another year of significant progress for Dreams.”





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