Share this on

Court OKs Simmons plan, paving way for acquisition

By David Perry -- Furniture Today, January 11, 2010

ATLANTA — Simmons won court approval last week for its prepackaged Chapter 11 restructuring plan, paving the way for the company to be acquired by affiliates of Ares Management and the Ontario Teachers' Pension Plan.

Simmons said it anticipates that it will complete the transaction and emerge from Chapter 11 on or around Jan. 20.

Last week's decision by the U.S. Bankruptcy Court in Delaware marked the last hurdle that Simmons has had to clear since the restructuring plan was announced in September. Ares Management and the Ontario group also are the owners of bedding major Serta.

Officials of the acquiring entities said they are anxious to proceed with the Simmons deal.

“Since we first announced our joint interest in the company last September, we have become even firmer in our belief in Simmons Bedding's prestigious brand name, its innovative products, strong and experienced management, as well as positive fundamentals we see for the industry,” said Bennett Rosenthal, senior partner at Ares Management.

Erol Uzumeri, senior vice president of Teachers' Private Capital, the Ontario Teachers affiliate, said: “What this process has confirmed for us is that Simmons Bedding is the type of company that we seek: One with proven talent throughout the organization and a strong franchise. The company's historical performance is excellent when measured against our core investment criteria, and with its new capital structure, we are confident this investment will produce significant returns for us and all of its stakeholders — both now and over time.”

Simmons President Steve Fendrich said the court approval “further validates the viability of our plan and opens the door to an exciting future for our company, our employees and all of our suppliers and our customers.”

Share this on

Simmons wins court OK for planned sale

Jan 5, 2010

Also by this author

Also by David Perry

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more

Most Recent Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.