Fairfax Holdings has completed its $1.7-billion acquisition of mattress retailer Sleep Country for $1.7 billion.

Toronto-based Fairfax made the purchase through a new wholly-owned subsidiary via a plan of arrangement under the Canada Business Corporations Act. Under the terms of the agreement, Fairfax acquired all of Sleep Country’s issued and outstanding shares for $35 per share.

Brampton, Ont.-based Sleep Country has 307 corporate-owned stores and 18 warehouses across Canada. The company operates under the banners Sleep Country Canada, Dormez-vous, the rest, Endy, Silk & Snow, Hush and Casper Canada.

As a holding company, Fairfax primarily engages in property and casualty insurance and reinsurance and related investment management through subsidiaries.

“We have concluded that this transaction is in the best interests of Sleep Country and is fair to our shareholders,” said Christine Magee, a Sleep Country co-founder and independent shareholder, said previously.

“Following a comprehensive assessment and our extensive negotiations with Fairfax, we are pleased to have reached an agreement that provides certainty of significant and immediate value to shareholders.”

Magee chaired a special committee of independent directors that oversaw negotiations. When the deal was announced, Stewart Schaefer, president and CEO of Sleep Country, said the deal clearly demonstrates the value of the company’s brands and organization.

“We look forward to working with [Schaefer] and the entire Sleep Country team to further develop this remarkable Canadian success story over the long term,”: said Prem Watsa, chairman and CEO of Fairfax, said at that time.

Watsa founded the company in 1985.

As part of the exit from bankruptcy protection, Sleep Country will be delisted from the Toronto Stock Exchange. Shareholders had given the deal 99.93% support, easily surpassing the Ontario Court of Justice requirement of a two-thirds majority.

Photo: Sleep Country