Simmons sleeps tight as a top US mattress maker alongside rival Sealy. The company, founded by Zalmon Simmons in 1870, makes mattresses and accessories for a range of customers looking for luxury, eco-friendly, and memory-foam products. It makes products under the Beautyrest, DeepSleep, BeautySleep, ComforPedic, Natural Care, and Simmons labels. Simmons sells its products in North America through more than 15,500 furniture outlets, department stores, and specialty shops. It also operates a handful of World of Sleep shops. Simmons Bedding is owned by AOT Bedding Super Holdings LLC, a holding company formed in 2010 by Ares Management and the Ontario Teachers' Pension Plan, to house Simmons and Serta.
Change in Company Type
AOT Bedding Super Holdings purchased Simmons for $760 million. In late 2012 private equity firm Advent International agreed to buy a majority stake in AOT Bedding Super Holdings for about $3 billion, thereby taking control of one of the nation's biggest mattress makers. Once the deal is completed, Ares Management and Ontario Teachers' Pension Plan will retain a significant stake in the company.
Declining consumer spending amid the US recession has prompted Simmons to restructure its operations and debt. To this end, the mattress maker slashed liabilities from about $1 billion to $450 million and obtained about $35 million in debtor-in-possession financing.
Simmons makes most of its revenue through wholesale sales of its innerspring mattresses. The manufacturer partners with other US and Canadian manufacturers by licensing its brand names for bedding accessories, furniture, and air beds. For items sold outside the region, Simmons enlists third-party manufacturers to produce its branded goods. In addition to its manufacturing and licensing operations, Simmons distributes mattresses and other bedding to the hospitality industry (Starwood Hotels, La Quinta, Best Western) and to government agencies. Starwood's Westin properties promotes its Heavenly Bed, which is a Simmons Beautyrest mattress produced under private label. The company also boasts supply agreements with Leggett & Platt, FXI Holdings, and National Standard Company. – less