Cerberus acquires US' Brooklyn Bedding & Helix Sleep

Upon completion of the transactions, the businesses will operate under a holding company structure in partnership with their respective founders, as well as other existing shareholders, who will retain a significant minority ownership interest in the combined business on a going forward basis. The combined company will be a leading direct-to-consumer mattress platform that will provide customers with a broad portfolio of high-quality offerings and superior end-to-end experiences, Cerberus said in a press release.

Brooklyn Bedding crafts expertly-made bedding with its cutting-edge equipment and patented materials and distributes its products through an omni-channel platform. Helix Sleep designs and provides custom-made mattresses through a tailored digital experience and analytics-focused marketing strategy. Together, the combined company will offer customers Brooklyn Bedding’s and Helix’s leading products through a vertically integrated, scalable platform supported by best-in-class manufacturing and digital capabilities.

Brooklyn Bedding and Helix will continue to operate under their respective brand names and the combined company will be led by John Merwin, current chief executive officer of Brooklyn Bedding. Helix’s co-founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will lead the direct-to-consumer segment of the combined business, according to Cerberus.

The transactions are expected to close early in the fourth quarter of 2021, subject to the satisfaction of all regulatory and other customary closing conditions. Credit Suisse served as exclusive financial advisor and Simpson Thacher & Bartlett served as legal advisor to Cerberus. FocalPoint Partners served as financial advisor and SheppardMullin served as legal advisor to Brooklyn Bedding. Moelis & Company served as exclusive financial advisor and Bass, Berry & Sims served as legal advisor to Helix.

“We have long admired Helix and are excited to be teaming up with them. Helix’s innovative business model has driven extraordinary growth, and its high-quality products have made it a trusted brand to customers. Supported by Cerberus’ operational and technology expertise, our combined platform will be able to capture significant growth opportunities and deliver even greater mattress-buying experiences for our customers,” John Merwin, chief executive officer of Brooklyn Bedding said in a press release.

“Our vision has always been to sell exceptional home and sleep products to our customers, so that they can enjoy the moments that matter with the people they love. We know first-hand that Brooklyn Bedding shares a similar customer-first mission and is one of the finest manufacturers of mattresses in the country. The integration of our two organisations and Cerberus’ partnership will enable us to become a category leader that provides customers with innovative new products and first-class service,” Adam Tishman, Kristian von Rickenbach and Jerry Lin, co-founders of Helix said.

“This is an exciting opportunity to combine two incredible businesses with highly complementary capabilities. Brooklyn Bedding and Helix will bring together their respective strengths to meet the growing demand in the DTC mattress market. Together, the company will deliver expertly crafted products made in the US and world-class customer experiences. We look forward to working alongside this leadership team as they build on their shared mission and help even more customers on their mattress-shopping journey,” Scott Wille, senior managing director at Cerberus said.

Fibre2Fashion News Desk (GK)