Sleep Innovations hires investment banking firm; looks for investors
Ray Allegrezza -- Furniture Today, January 12, 2012
West Long Branch, N.J. - Memory Foam leader Sleep Innovations announced it has retained New York-based Sawaya Segalas & Co. LLC, a consumer investment banking firm, to explore "strategic opportunities that could include the sale of the business." The company said it is looking to attract long term investors to continue its "aggressive growth plans."
In a statement released this week, the company says it expects the process to progress quickly, with Sleep Innovations ceo Michael Thompson confirming that it may be as early as May 2012 when an announcement or plan is in place.
According to Thompson, Sleep Innovations has exceeded strategic goals set after its Chapter 11 filing in 2008 and subsequent restructuring. Over the last two years the company has invested heavily in new product development in memory foam consumer goods both in traditional bedding categories and in new product areas. With this announcement, the company is looking to continue that growth.
"We've gone from new products being 3 percent of our business to now being 20 percent; we are on our way to having that be 30 percent," said Thompson, adding, that there are a myriad of household applications for memory foam in every room in the house. In addition, the company reported that its "capital investments in its state-of-the-art foam pouring facility in Baldwyn, MS as well as investments in lean deployment and productivity have created an efficient manufacturing platform to support improved quality, delivery and reduced costs," all checklist items adding to the value of the company for prospective investors.
Over the last few years, the company has ventured beyond the typical memory foam uses in pillow and mattress toppers and introduced applications such as a memory foam bath mat as well as its Crash Landing memory foam chair. Thompson noted that it has a "robust set of new products in the pipeline," including more new introductions in the bath area. Last year, it signed Olympic gold medal swimmer Dara Torres as a spokesperson for the Rejuvenation brand and introduced new products for the back-to-school college crowd.
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