Boston, Massachusetts - Private equity group Advent International said 5 Aug that it is buying a majority interest in AOT Bedding Super Holdings, the parent of National Bedding Co. (majority owner and licensee of Serta) and Simmons Bedding Co.
Advent sees the bedding groups as "two of the largest and fastest growing mattress manufacturers in the world, offering a wide variety of innovative and popular mattresses across various price points."
According to an Advent statement, current investors Ares Management llc and the Ontario Teachers' Pension Plan (Teachers') will keep a significant stake in the two bedding producers. The transaction is expected to be completed by the fourth quarter of 2012, subject to various conditions.
"We are looking forward to our partnership with Advent, as well as our continued relationship with Ares and Teachers'," said Bob Sherman, ceo of Serta, in a statement from the investor. "Advent's experience and resources will help Serta continue our track record of growth and enhance our partnerships with customers and suppliers."
"Over the past two years, we have invested significant resources to better understand and then meet the needs and preferences of our customers," commented Gary Fazio, ceo of Simmons Bedding, adding that Simmons is pleased to be working with the new and existing investors, to "gain market share by providing superior products and customer support."
"Our strategy going forward is to continue to grow the businesses by ensuring that Serta and Simmons remain focused on delivering high quality mattresses that help people sleep better," said Advent managing director Steven Collins.
Serta and Simmons will continue to be managed jointly by the board of their holding company and will continue, as previously, to maintain separate sales, marketing, merchandising and customer-specific product design functions.
Also, the two companies will market their materials separately, although they will sometimes work together with dealers and in other areas to achieve cost efficiencies and implement best practices.