Dormia Mattresses gets new investment partner
By David Perry -- Furniture Today, February 19, 2006
Jessup, Md. — Dormia Mattresses, poised for a growth year with an expanded management team, has a new investment partner to help build its brand.
Private equity firm Main Street Resources has invested in the specialty sleep company, which boasts a growing network of dealers and company-owned stores. The companies did not disclose the size of Main Street's ownership stake.
"Mike Zippelli, president and CEO of Dormia, is a visionary in this fast-growing market segment," said Dan Levinson, founder of Main Street Resources. "We are very excited to support and strengthen Dormia's position in the industry. They have an excellent foundation and a great corporate vision, which includes strategic brand expansion and exploring new manufacturing capabilities."
Connecticut-based Main Street says it provides equity capital to small and middle market companies to fund growth, acquisitions, management buyouts and turnarounds. Main Street invests $2 million to $10 million per deal, taking majority or minority ownership stakes.
"Working with a committed partner like Main Street is invaluable as we look toward the future growth of Dormia," Zippelli said. "Main Street's investment gives us great flexibility in building the Dormia brand. We will open our 30th retail location in the first half of 2006, and with the financial support of Main Street, we can accelerate our plan to make Dormia widely recognized by the health-conscious consumer who is looking for a better night's sleep."
Classic Sleep Products, Dormia's manufacturing division, based in Jessup, supplies brand-name and private-label mattresses, pillows and accessories to mattress retailers nationwide, including company-owned stores.
Dormia, which specializes in visco-elastic foam and latex mattresses, also is rolling out a new Web site and a national cable-TV campaign. And it has retained retail makeover guru Connie Post to give its stores a fresh new face.
"With the growing number of retailers who are now carrying Dormia, and the growing number of markets that we are now in, it is time to step up our advertising efforts," said Ken Krutick, vice president of marketing. "Our goal of driving consumers to our new Web site and to our dealer base of retailers is working."
The new Web site is designed to be more consumer friendly, with a greater emphasis on the dealer and store locator. It is ZIP-code driven and lists all dealers within a 60-mile radius of the ZIP code entered. It also features the "Dormia difference," with views of the factory.
The site was launched as the company took part in the recent Las Vegas market, which Dormia executives described as successful.
Dormia's national TV campaign will focus on adults 35 and over with "a slightly female skew," the company said. A coordinated Internet campaign will concentrate on local searches and mattress-related keywords.
One of the architects of the company's moves is Tim Sommer, recently hired as vice president of strategy and planning. He built a national reputation as a bedding merchandiser at HOM Furniture, based in Minnesota.
"Television has always been a strong media," Sommer said, "but the Internet is where people are overwhelmingly going to research what products they will buy. Our coordinated campaign to match our TV message with specifically targeted local Internet ads to drive traffic to our dealers and stores is a strong approach."
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Dormia Mattresses gets new investment partner
Feb 23, 2006
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