Fenway Partners Agrees To Acquire Mattress Giant

Furniture World Magazine

Fenway Partners, a New York-based private investment firm, today announced a significant strategic move to increase its presence in the rapidly consolidating retail bedding industry by agreeing to acquire Dallas-based Mattress Giant, a leading U.S. bedding retailer. The transaction, expected to close in the fourth quarter of 1999, involves the participation of the Mattress Giant's senior management, including Phil Lang, Chairman and Chief Executive Officer, who has led the company's dramatic growth since 1992. Mr. Lane, will continue to have a substantial ownership interest in the company. Terms of the transaction were not disclosed. Mattress Giant is one of the largest bedding retailers in the United States and operates a network of retail stores from which it distributes brand name mattresses and related products. Over the past 22 months, Mattress Giant has increased its size from 63 stores to 170 stores. Fenway has related experience in the bedding industry through its majority ownership position in Simmons Company, a leading manufacturer of bedding products with revenues of over $640 million. Mr. Lang said, "Over the past two years we have adopted an aggressive growth strategy to expand our retail presence, strengthen our product offerings and broaden our management team. Our vision is to increase our leadership in mattress sales and to sell through nationwide retail outlets. Our partnership with Fenway will provide additional resources to help Mattress Giant achieve these ambitious goals." Richard C. Dresdale, co-founder and President of Fenway, added, -Fenway's focus is to help businesses grow and that is clearly the opportunity we see with Mattress Giant. Together with Phil Lan and his talented management team, we look forward to pursuing complementary acquisitions and other exciting expansion initiatives.'" Fenway Partners, Inc.. recognized for successfully building brands and businesses, is a private equity firm based in New York with funds under management more than $1.4 billion. In partnership with management, the firm invests in companies with strong strategic positions and significant opportunities for growth. Fenway provides management and strategic guidance to improve operating and financial performance of its portfolio companies which include in addition to Simmons Company, Aurora Foods, Delimex, Iron Age, CT Farm & Country, Decorative Concepts, New Creative Enterprises and FNX, among other leading enterprises. Mattress Giant, with annual sales of approximately $170 million, has retail operations in 11 states throughout the country, primarily in the South, Midwest and East Coast. Mattress Giant sells brand name mattresses such as Simmons, Spring Air, Serta, King Koil, Kingsdown and IBC.