Latex International to acquire full ownership of Pure LatexBliss
David Perry -- Home Textiles Today, 9/29/2011 2:59:55 PM
Shelton, Conn. - Latex International has signed a letter of intent to acquire full ownership of Pure LatexBliss to accelerate the growth of the mattress, topper and pillow brand, officials said.
Terms of the pending transaction were not disclosed.
Latex International bought a 51% stake in Pure LatexBliss last year. When it acquires the remaining stake, Pure LatexBliss, founded in 2009, will be a wholly owned subsidiary.
Latex International, based here, is a supplier of latex products to mattress producers. Atlanta-based Pure LatexBliss sells mattresses, toppers and pillows to mattress retailers.
Latex International executives said the purchase would enable the company to better position latex in the mattress industry.
Pure LatexBliss founders Kurt Ling and Joe Hunt will continue to be involved with the leadership of the brand, officials said.
Latex International said it will continue to actively pursue its OEM business in North America with its key manufacturing and factory direct accounts. Latex International does business in 60 countries.
"In the past two years, Pure LatexBliss has become one of the fastest growing luxury mattress brands in the world, doing business in six countries," said Latex International President and CEO Dave Fisher. "The brand has proven to be a successful alternative for retailers to maintain high tickets and increase margin dollars of specialty bedding consumers who are ready to spend $2,000 to $3,000 on a mattress but don't like the feel of memory foam."
As a part of this new direction, Latex International will shift its Rejuvenite direct to retail pillow line to Pure LatexBliss branding, officials said.
Fisher said the latex industry needs a stable of strong brands "to sit across from successful memory foam on retail floors, and retailers need more profitable alternatives in the specialty sleep market. We believe that Pure LatexBliss is a ‘pure' stallion in our sector."
Ling added, "Latex International has been a tremendous supporter of our company since inception. This deal is good for us personally and professionally. It allows Pure LatexBliss to go to the next level to service retailers and consumers."
Fisher said latex "deserves to be at the forefront of the specialty sleep category. This is its time. I am certain that the consumer education, retail sales training, and stature of latex as a category will be raised as Pure LatexBliss continues to succeed, no differently that what has happened in the memory foam category. We will continue to look to invest in key strategic partners who understand and are passionate about the benefits of Talalay latex."
Retail reaction to the news has been encouraging, officials said.
Since its founding, Pure LatexBliss was a sales and marketing company using contract manufacturers and logistics partners. The Pure LatexBliss team initially included four people, all friends who had worked together at Simmons.
The company has expanded from one fabrication site and warehouse in Atlanta to four fabrication sites with regional distribution centers in Atlanta, Miami, Phoenix, Portland, Ore., and France.
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