Sleep Innovations to be Acquired by Sun Capital Partners
Home Accents Today Staff -- Home Accents Today, October 23, 2012
WEST LONG BRANCH, N.J. - Sleep Innovations Inc.is changing hands again. The foam sleep products manufacturer -the 12th largest home textiles company in HTT's Top Suppliers ranking - has signed a definitive agreement to be acquired by Sun Capital Partners Inc., a private investment firm specializing in leveraged buyouts and investments.
Terms were not disclosed.
"On behalf of the management team of the company and the board of directors, I am pleased that we delivered significant growth and value for our investors as a result of the transaction," said Diane Baker, Sleep Innovations' chairwoman.
Baker, a turnaround specialist, became chairwoman in 2009. Last January, Sleep Innovations retained New York-based Sawaya Segalas & Co. LLC, a consumer investment banking firm, to explore "strategic opportunities that could include the sale of the business."
Sleep Innovations was founded in 1996 by industry veteran Michael Fux, who now owns a competing company, Comfort Revolution. In fall 2005, Catterton Partners bought a controlling interest in Sleep Innovations.
The company generated approximately $261 in sales in 2011, according to HTT's ranking.
Sleep Innovation's current assortment consists of polyurethane foam mattresses, mattress toppers, pillows, and specialty products. Through its Advanced Urethane Technologies division, the company also produces polyurethane foam-based fabricated components and bulk materials for original equipment manufacturers (OEM) who serve the mattress, furniture, automotive, marine, medical packaging markets.
Marc Leder, co-ceo of Sun Capital, said Sleep Innovations stands to "benefit from our extensive experience in the bedding and retail industries as the company looks to continue on a growth path," adding that Sun Capital "has deep experience in the bedding market, most notably with bedding product retailer Mattress Firm, which was successfully exited in 2007 at an attractive return."
Sleep Innovations' president and ceo Michael Thompson - who came to the company from private equity firm American Capital Ltd - said Sun Capital, "offers Sleep Innovations the breadth of financial and operating capabilities to support the future growth of the company."