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Acquisition
| Investment Date: |
Oct. 1998
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| Revenue: |
$601M
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| Fenway Investment: |
$118M
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(Fund I & II)
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Value Creation
- Recruited new senior leadership
- Reinvested in product innovation to reposition product line to higher retail price points
- Became customer-focused and re-energized new account development
- Improved manufacturing quality and reduced cost structure
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Simmons Bedding Company, a leading manufacturer of premium-branded bedding products in the United States, is the maker of Beautyrest®, BackCare®, Olympic® Queen, and Deep Sleep® mattresses. |
Investment Profile
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- Consistent industry growth
- Favorable demographic trends – population growth, aging, larger houses
- Stable, rational competitors
- One of three market-leading brands
- Strong consumer brand awareness
- Rapid inventory turns
- Predictable cash flows to de-leverage
- Historical lack of continuity: seven owners over 20 years
- Margin weakness vs. peer group
- Indifferent focus on product innovation
- Complex, bureaucratic management hierarchy
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Facts at a Glance
