Investment bankers and banking institutions are keenly aware that the statistical results of the Mattress Industry can and will fluctuate, often somewhat dramatic, from year to year. However, the Mattress Industry has produced overall consistent, impressive and stable growth over a long period of time. This consistent long term growth pattern, measured in raw dollars, units produced and average unit selling price, has been the financial hallmark of the Mattress Industry and has attracted a large amount of merger & acquisition activity over the years. The Mattress Industry has been the beneficiary of such high level of interest from both strategic and financial participants as the Mattress Industry has evolved from only the original and traditional innerspring model to include such product innovations as foam, latex, gel, hybrid, bed in box, adjustable beds and other creative industry products designed to satisfy the ever-changing demands as presented by the evolving consumers.
Our firm, since its’ inception in 1991, has been very fortunate to have played a major role in many of the Mattress Industry transactions, involving mergers, acquisitions, divestures, sell-side and buy-side mandates, valuations, fairness opinions, capital formation, balance sheet restructuring and corporate and financial advisory services.
In that regard, following is a list of entities that our firm has had the pleasure to provide investment banking services to, in one form or the other, over the past thirty plus years and also limited selected transaction tombstones containing a description of those transactions:
Adam Wuest, Inc. (Serta Licensee)
Dixie Bedding (Serta Licensee)
Simmons Bedding Company (Investcorp)
IBC Group, Inc.
Kingsdown, Incorporated
Sherwood Bedding (Steinhoff International)
Corsiciana Bedding, Inc
Spring Air International (Licensee-Corsiciana Bedding, Inc.)
Englander Sleep (Licensee–Corsiciana Bedding, Inc.)
Eastern Sleep Products (Symbol Mattress)
Advanced Comfort Technologies, Inc. (Intellibed)
Simmons Bedding Company (Kohlberg Kravis Roberts & Co.)
Sealy Corp. (Bain Capital and Kohlbery Kravis Roberts & Co.)
Innovative Mattress Solutions
Alliance Sleep (Restonic Licensee)
Stevens Bedding (Restonic Licensee)
W.S. Badcock Bedding
Silverline Bedding (Restonic Licensee)
Innovative Motion Solutions
STS Linens, Inc.
Limited Selected Transaction Tombstones
Eastern Sleep Products, Inc.
Eastern Sleep Products, Inc., D/B/A Symbol Mattress, a privately owned entity founded in 1961 and based in Richmond, Virginia, is a national bedding manufacturer with a broad product line ranging from entry level promotional to premium price point product. The Company has been acquired by Corsicana Mattress Company, founded in 1971, based in Corsicana, Texas and believed to be the largest mattress and related component unit manufacturer in the United States. The acquisition included multiple manufacturing facilities throughout the nation as well as the corporate headquarters in Richmond. The combined entities will operate 16 manufacturing facilities and employ more than 1,300 employees. Corsicana Mattress Company is owned by Long Point Capital, a private equity firm based in New York. Mann, Armistead & Epperson, Ltd. served as the exclusive financial advisor to Eastern Sleep Products, Inc.
Sherwood Bedding
Sherwood Bedding is a third-generation American manufacturer of private-label mattresses, providing superior value at every price point. The Company operates four bedding manufacturing plants strategically located across the United States enabling it to provide nationwide distribution to its’ retail base. Sherwood Bedding sold a majority ownership interest, previously held by Steinhoff International Holdings N.V. (a publicly held global retailer with revenues in excess of $13 billion, headquartered in Stellenboch, South Africa with more than 40 brands in over 30 countries) to a wholly-owned subsidiary of Tempur Sealy International (a publicly held bedding manufacturer with revenues in excess of $3.0 billion which develops, manufacturers, markets and distributes bedding products in the United States, Canada and internationally). Mann, Armistead & Epperson, Ltd. served as the financial advisor to Sherwood Bedding in this transaction.
Corsicana Bedding, Inc.
Corsicana Bedding, a privately held family owned company, was founded in 1971 in Corsicana, Texas as a domestic-based wholesale promotional bedding manufacturer operating nine manufacturing plants strategically located throughout the U.S. Corsicana is believed to be one of the highest volume bedding and mattress unit producers in the U.S. Corsicana produces quality bedding under a unique system of both generic and private label brands, marketed at extremely competitive prices which allows the retailer, utilizing product differentiation, to enjoy higher than normal gross profit margins. Corsicana was recapitalized alongside management by Long Point Capital, a New York-based firm. Mann, Armistead & Epperson, Ltd. served as the exclusive financial advisor to Corsicana Bedding.
Kingsdown, Incorporated
Kingsdown, Incorporated was originally formed as The Mebane Bedding Company in 1904 in Mebane, North Carolina. Over the years, Kingsdown has launched many innovations such as the Sleep to Live Institute, the DormoDiagnostics and bedMatch technology and most recently the Body Perfect Sleep System. Kingsdown manufactures in geographically dispersed factories throughout the U.S., ships product domestically and internationally and additionally has a very successful international licensee program. Kingsdown was privately owned with most of the stock being held for multiple generations by local families. Additionally, the Company had substantial ownership vested in an Employee Stock Ownership Program. Mann, Armistead & Epperson, Ltd. served as a financial advisor to management and to the Board of Directors for numerous years and then acted as the Company’s exclusive investment banker during a merger and recapitalization with its one of its original licensees, located in Canada and backed by private equity. This transaction provided liquidity for the shareholders and the ESOP while providing additional capital for continued domestic and international expansion.
Dreamwell, Ltd.
Simmons Company engaged Mann, Armistead & Epperson, Ltd. to assist in reviewing marketplace options, soliciting potential partners and executing a transaction as part of the process of finding a new upholstery partner. Simmons is one of the world’s largest mattress manufacturers, manufacturing and marketing a broad range of products under its well-recognized brand names. Simmons is partnering with United Furniture Industries to brand a collection of furniture with the Simmons and Beautyrest brands. The license agreement combines the strength of Simmons’ technology and brand names with the fashion-forward look of United Furniture’s lines of stationary upholstery, motion upholstery, recliners and sleepers. Mann, Armistead & Epperson, Ltd. advised Dreamwell, Ltd. in this transaction.
IBC Group, Inc.
IBC Group, Inc. was recapitalized by the founding Ellman family and Brockway Moran & Partners, Inc., a Florida based private equity firm. IBC, headquartered in Fort Lauderdale, Florida, is a leading national manufacturer of quality mattresses and foundations operating under the name of International Bedding Corporation. The Company operates ten manufacturing facilities in eight states strategically located around the country to serve retailers nationally. IBC offers a variety of mattress types that are marketed through leading mattress retailers, furniture retailers and mass merchandisers as well as the hospitality trade. Due to the Company’s rapid growth, the Ellman family sought an equity partner that would continue to support its domestic growth as well as provide future capital for IBC’s international growth opportunities. Mann, Armistead & Epperson, Ltd. served as advisor to IBC Group, Inc.
Sealy Corp.
Sealy Corporation, headquartered in Trinity, North Carolina, is the world’s largest manufacturer of bedding products with sales of $1.2 billion in 2003. The Company manufactures and markets a broad range of mattresses under the Sealy®, Sealy Posturepedic®, Stearns & Foster®, and Bassett® brands. The Company was acquired by Kohlberg Kravis Roberts & Co. (KKR), based in New York and one of the world’s leading private equity firms, for approximately $1.5 billion from Bain Capital, also a leading private equity firm based in New York. As a special advisor to KKR, Mann, Armistead & Epperson, Ltd. provided industry related information critical to the acquisition process. Our firm also provided similar advisory services to Bain in 1999 during their acquisition of Sealy.
Adam Wuest, Inc.
Founded in 1850 in Cincinnati, Ohio, Adam Wuest is a leading producer of Serta, Inc. brand mattresses and boxsprings. At the time of the transaction, Adam Wuest was one of the eleven regional manufacturers licensed to manufacture the full-line of Serta products. Our firm first became involved with Adam Wuest subsequent to our $80.0 million divestiture of Dixie Bedding, a sister Serta licensee company. Our role was to assist Adam Wuest, a sixth generation family owned business, through a transfer of ownership with Serta licensees going through a roll-up by two different private equity firms. Mann Armistead & Epperson, Ltd. was asked by the Company to prepare materials and solicit the interest of those two private equity firms. Within sixty days, our firm was successful in transferring ownership of Adam Wuest for $62.0 million in cash to an affiliate of CitiCorp Venture Capital (CVC).
