Sterling to buy 8.9% stake in Select Comfort
By Furniture Today Staff -- Furniture Today, October 12, 2009
MINNEAPOLIS — Bedding producer and retailer Select Comfort said last week it had reached a new agreement with Sterling Partners that would give the private equity firm an 8.9% ownership stake.
Under terms of the deal, Sterling would invest $10 million by June in exchange for 2.5 million shares at $4 per share, plus warrants to purchase an additional 2 million shares at 1 cent per share. After exercise of the warrants, Sterling would have an 8.9% stake.
Earlier this year, Sterling had agreed to buy 50 million Select Comfort shares for $35 million, or 70 cents per share. That would have given the firm 52.5% ownership and a majority of the seats on the company's board. However, that deal was narrowly rejected by shareholders.
