Investors acquire United Sleep
By David Perry -- Furniture Today, January 29, 2006
Chicago — Northlight Capital, an investment company here, has acquired United Sleep Products, a Pennsylvania-based mattress and futon producer. Financial details were not disclosed.
Northlight officials said United Sleep will serve as the platform for its entry into the U.S. bedding industry, which it said has achieved average annual growth of 6.2% for the past 20 years. It expects the rate to increase based on growing interest in sleep-related health and comfort products.
"United Sleep provides an excellent platform from which to grow organically and through selective strategic acquisitions," said Lisa Kaufman, Northlight managing partner and now board chairman of United Sleep.
She called the company "one of the very few remaining independent mattress manufacturers of a significant size which provides a strong foundation for growth. We are excited to build on the exceptional base that United Sleep's experienced team has created."
Northlight describes itself as a private equity firm that invests $10 million to $50 million in equity capital in middle-market companies. Its partners provide industry insights and serve on the boards of its portfolio companies.
United Sleep produces mattresses, foundations and futons primarily for sale in the Northeast and Midwest. It is the licensee for Simmons brand futons.
Marc Werner, Northlight's chief operating partner, will serve as interim president and CEO of United Sleep. He has been CEO and chief financial officer of consumer products companies over the past 25 years, including the world's largest ladder manufacturer, Werner Holdings.
"We are particularly impressed by United Sleep's reputation for service and quality and its ability to manufacture comparable quality products to the major brands at a more affordable price point," Werner said.
He described United Sleep as "a classic Northlight portfolio investment, one where we can combine our partners' manufacturing and industry experience, financial acumen and progressive strategic abilities."
The acquisition was six months in development, said Mike Jester, former owner and CEO of United Sleep.
"The decision to sell the business was a difficult one and the road was long," he said. "Throughout, we have been impressed with the resources Northlight brings to the table."
Jester is an investor in the new company and will provide consulting services to Northlight.
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Northlight Capital buys United Sleep
Jan 24, 2006
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