Ironwood Capital has made a subordinated debt and minority equity investment in Blue Bell Mattress, a manufacturer of private label and license-branded mattresses for customers in the retail mattress and furniture industry. Blue Bell is a portfolio company of Landon Capital Partners.
Blue Bell sells its mattresses under the Blue Bell Mattress and the King Koil brands and is considered to be one of the top ten mattress manufacturers in the US. Blue Bell, founded in 1928 and led by CEO Mark Kolovson, is headquartered north of Hartford in East Windsor, CT (www.bluebellmattress.com).
“Our investment was made to support Blue Bell’s acquisition of Comfort Mattress Company, the mattress manufacturing assets of Art Van Furniture,” said Alex Levental, Ironwood Capital Managing Director. “With this acquisition, Blue Bell is positioned as the dominant private label and King Koil manufacturer in both the Northeast and Midwest, with the ability to serve growing, super-regional customers.” Art Van Furniture, the Midwest’s largest furniture retailer and one of America’s largest independent furniture retailers, was acquired by Thomas H. Lee Partners in February 2017.
“Blue Bell positions itself as a partner to its customers instead of a vendor, with value-added services beyond manufacturing including product development, warranty returns and assistance with sales and marketing,” said Carolyn Galiette, Ironwood Capital’s President and Chief Investment Officer. “The company is diversified, providing mattresses across all price points and market segments. Its value-add business model and customer and price point diversification are attractive to us and to Blue Bell’s customer base.”
Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts. Ironwood Capital is headquartered in Avon, CT (www.ironwoodcap.com).
Landon Capital Partners is the direct private equity investment group of the Landon family and invests in lower middle market companies that have from $5 million to $20 million of EBITDA. Sectors of interest include healthcare services, business services, niche manufacturing, and food and beverage. The firm was founded in 2015 and has offices in Boston and London (www.landoncapital.com).
© 2017 Private Equity Professional | December 13, 2017
