Spring Air licensee open to buy
By David Perry -- Furniture Today, July 4, 2005
Tampa, Fla. — A new Spring Air is rising here.
Consolidated Bedding Inc., Spring Air's largest licensee, is bidding to buy several more Spring Air licensees and play a leading role at the industry's fourth-largest producer.
Led by hard-charging Steve Antinori, Consolidated Bedding aims to boost Spring Air's presence in a marketplace where its biggest rivals already have consolidated.
Consolidated is working in partnership with Spring Air's corporate staff. Spring Air President Jim Nation said he has a good working relationship with Antinori's group, adding Antinori has brought a focused approach to his Spring Air business.
"We are a mattress company first," Antinori said in an interview here. "We have excellent financial partners. We went through our merger with H.I.G. to take Spring Air to the next level."
Earlier this year, American Bedding, Spring Air's Tampa-based licensee, merged with Spring Air Partners to establish Consolidated Bedding Inc., which operates a 260,000-square-foot facility here, as well as seven other Spring Air plants in North America.
Spring Air Partners, then Spring Air's largest licensee, emerged from Chapter 11 bankruptcy protection last year. H.I.G. Capital, a Miami-based investment firm, acquired Spring Air Partners as part of that process.
Antinori has assembled a team of industry veterans to integrate those Spring Air operations and position the company for growth (see story above). Steve Russo, formerly CEO of Latex International, is heading that effort as president and chief operating officer.
Antinori puts it this way: "We can make a difference in this group and bring a different kind of company to the mattress industry. We are in the process of formulating a win-win opportunity."
A deal to acquire the second-largest Spring Air licensee is close to completion, Russo said. When that happens, Consolidated will account for about two-thirds of Spring Air's volume; it now represents half of Spring Air's revenues.
Consolidated aims to acquire as many remaining Spring Air licensees as possible, Antinori said. Nation said Spring Air is moving toward becoming a consolidated company, but couldn't predict when that would be largely completed.
Antinori and Russo said Consolidated has a unique opportunity to build a group that stresses innovation and customer service, hallmarks of Antinori's business.
Consolidated's portfolio consists of Spring Air as the flagship brand (including Back Supporter, ComfortFlex, Four Seasons and Sleep Fitness lines) along with Nature's Rest, Chattam & Wells and Sleepinergy. The latter three are part of the newly formed Innovative Brands Group, headed by industry veteran Rick Robinson. IBG will be an important part of Consolidated Bedding's growth, said Robinson, president of the unit.
Consolidated sold its Orthomatic adjustable bed business to Leggett & Platt a few years ago to concentrate on mattresses. "Our plan is to continue growing this mattress company," Antinori said. "We didn't invest in this for the short term. Our family doesn't do anything short term."
The Antinori family is relatively new to Spring Air, becoming a licensee six years ago. Before then, American Bedding, as the business was known, was a Springwall licensee and a maker of private-label products.
Asked why the company switched to Spring Air, Antinori said, "It's very simple. We are a very successful company. Six years ago, when we became a Spring Air licensee, we made a commitment and have grown our business with Spring Air."
Nation said, "American Bedding and Spring Air were a win-win combination in Florida."
Antinori said, "We like to be in control of our own destiny. We feel Spring Air is in a perfect position for growth.... It's not like we can walk away from Spring Air. It's too good a brand. The biggest thing is that you need direction. We believe we can bring a lot to the table."
He added his company has thrived by moving quickly and staying in touch with the market. "We turn the corners pretty fast," he said. "Our customers usually expand their business with us.... If they need something, we get it done. That culture is what we are taking out to the industry.
"Our competitors are a little more dictatorial. We try to be what our customers need. We fill any voids on their floors. Understanding the consumer is something we do. We live it."
