Atlanta, GA, Nov. 17--Boston-based private equity firm Thomas H. Lee Partners is acquiring control of bedding manufacturer Simmons Co., maker of the Beautyrest mattress, for $1.1 billion.
Thomas H. Lee Partners and Simmons owner Fenway Partners said Monday they had signed a definitive agreement and the deal is expected to close by the end of next month.
Fenway Partners, a New York private investment firm, bought Atlanta-based Simmons five years ago from the investment firm Investcorp. for $513 million. It began shopping for a buyer in August.
Fenway will retain a ten percent stake in Simmons, and Simmons chairman and chief executive officer Charlie Eitel will remain head of the company once the sale is complete. Eitel and several other members of senior management will also be investors in the company.
"We are very excited about this investment and the opportunity to partner with Charlie Eitel and his management team," said Scott Schoen, managing director of Thomas H. Lee Partners.
Simmons is the second-largest bedding manufacturer in the United States behind Sealy. In addition to Beautyrest, it makes BackCare, Deep Sleep, Olympic, Queen and DreamScapes products. Simmons employs more than 2,500 people and operates 18 plants in the U.S. and Puerto Rico.
The company was launched in 1870 when Zalmon G. Simmons built his first factory in Kenosha, WI. At the time, Simmons manufactured wooden insulators and cheese boxes. Today, it also makes mattresses, box springs, frames and bedding accessories.
Fenway Partners also owns Harry Winston Jewelers and sports equipment giant Riddell. In 1999, it bought a majority stake in Dallas-based Mattress Giant for an undisclosed price.
"We have valued our partnership with Fenway and their unwavering support in helping us execute our strategy, including our ongoing investment in our associates," Eitel said.
In addition to Eitel, Simmons' senior management team includes president Bob Hellyer, chief financial officer Bill Creekmuir and executive vice president of human resources Rhonda Rousch, all of whom will remain with the company.
