AOT Bedding Super Holdings, the parent company of National Bedding Company (the majority owner and licensee of Serta) and Simmons Bedding Company, has agreed to receive a majority investment from Global private equity firm Advent International.
Serta (Led by Bob Sherman, CEO) and Simmons (led by Gary Fazio, CEO), which are two large mattress manufacturers, will use the proceeds to continue to grow.
The transaction is expected to be completed by the fourth quarter of 2012, subject to various closing conditions. Following its close, existing investors Ares Management LLC and the Ontario Teachers’ Pension Plan (Teachers’) will retain a significant minority equity stake. Serta and Simmons will continue to be managed jointly by the board of directors of their holding company and will continue to maintain separate sales, marketing, merchandising and customer-specific product design functions.
The two companies will go to the marketplace separately, although, in some cases, will work together with dealers as well as in a variety of other areas.
FinSMEs
06/08/2012