Industry has mixed views on private equity players
As one private equity company enters the bedding industry, another appears to be wrapping up its short and ill-fated venture into the world of mattresses.
The role of private equity companies in the bedding industry is controversial. One body of opinion holds that those companies are too focused on financial issues and aren’t a healthy force for our industry. Another holds that they have brought much-needed financial and marketing sophistication to our industry. The truth, as usual, probably lies somewhere in between those two views.
It’s interesting that we haven’t heard a lot of
enthusiasm about the entry of a major private equity player into bedding. Sun Capital Partners, which has about $10 billion under management and has extensive experience in the furniture industry, recently said one of its affiliates had acquired controlling interest in International Bedding, a dynamic, Top 10 bedding maker based in Fort Lauderdale, Fla.
Unlike some of the private equity players who entered the bedding arena, Sun Capital already knows a lot about the furniture industry, and gained experience in bedding through its previous ownership of specialty retailer Mattress Firm.
Neil Ellman, the former president of International Bedding, described Sun Capital as "a fantastic partner for International Bedding and its employees," and cited the "deep operating experience" Sun and its affiliates have in the furniture and mattress industries.
But Ellman also said the Ellman family, including his father, Leon, and his brother, Lance, will be leaving the business to pursue other interests in and outside the furniture industry.
Frankly, that is a huge blow to International
Bedding. The growth story engineered by the Ellmans at the company they founded in 1974 is a remarkable one. The family is deeply connected in the bedding industry and is widely regarded as one of bedding’s brightest stars. It will be an extremely tough act for anyone to follow.
Meanwhile, another private equity firm is apparently ending its bedding venture. Northlight Capital bought United Sleep Products in January 2006 and talked about taking the company national. That didn’t work. Now Park Place, a respected regional bedding producer, is bidding to acquire United Sleep.
That’s a nice twist. A company with third-generation family management is following in the footsteps of a private equity firm. Congratulations to the Orders family.
