Hollander buying Louisville Bedding retail business
Home Textiles Today Staff -- Home Textiles Today, 4/23/2013 2:29:35 PM
Boca Raton, Fla. - In one of the biggest blockbuster deals the home textiles industry has seen since the go-go days of a decade ago, Hollander Home Fashions is buying the retail products business of Louisville Bedding Co.
When the deal is completed, expected sometime next month, it will create the third largest supplier in the industry, with annual sales of over $500 million and significant positions in most key utility and basic bedding categories.
Terms for the deal were not announced and the agreement still needs to be approved by Louisville shareholders. The company is an ESOP (employee stock ownership plan), owned by current and former employees. Hollander is owned by both the original founding Hollander family and Huntsman Gay Global Capital, a private equity firm.
The asset sale includes all of Louisville's retail business but excludes the company's contract bedding component unit which supplies various product elements to other manufacturers. That company will continue to operate under the Louisville Bedding Co. name and is expected to retain the parent company's management.
"We are excited about the purchase," said Chris Baker, Hollander CEO, "and believe the combination strengthens our ability to provide outstanding products and service to our customers. We are acquiring all of the operations in North America related to their retail business and many of the associates at Louisville Bedding will be joining Hollander."
Baker said the purchase includes two Louisville mattress pad manufacturing facilities in the company's home state of Kentucky as well as a plant in Canada. As such, it will greatly expand Hollander's pad business which has been a core Louisville classification. Louisville licenses, including Simmons and Nautica, are expected to come along as part of the deal, though are subject to approval
Steve Elias, ceo of Louisville, said he is confident the sale will be beneficial to all parties including customers and employees. "Hollander will enjoy increased production capabilities and desirable retail brands for their customers," Elias said. "We were fortunate to have a buyer that shares our vision for the American renewal movement and domestic production."
Hollander, based here, operates six plants in North America and sells under a variety of brand names, including Ralph Lauren, Laura Ashley, Waverly and Living Comfortably.