Cerberus Capital Management has formed a new direct-to-consumer mattress platform to acquire Brooklyn Bedding and Helix Sleep. The founders and current shareholders of Brooklyn Bedding and Helix Sleep will have a minority ownership interest in the yet unnamed new platform.
Brooklyn Bedding is a manufacturer and direct-to-consumer seller of mattresses, pillows and other sleeping accessories. The Phoenix-based company was founded in 1995 by John Merwin and Rob Merwin.
Before year-end, the company will complete the build of a new manufacturing facility in Glendale, Arizona, which will triple its production capacity.
Helix designs and sells custom-made mattresses based on its customer’s body type, sleeping position, and feel preference. New York City-based Helix was founded in 2015 by Jerry Lin, Kristian von Rickenbach, and Adam Tishman.
Post-closing, Brooklyn Bedding and Helix will be led by John Merwin, the current chief executive officer of Brooklyn Bedding, and Helix’s co-founders will lead the direct-to-consumer segment of the combined business.
“We have long admired Helix and are excited to be teaming up with them,” said Mr. Merwin. “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.”
“This is an exciting opportunity to combine two incredible businesses with highly complementary capabilities,” said Scott Wille, a senior managing director at Cerberus. “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 United States 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.”
Cerberus has approximately $55 billion of assets under management and invests in credit, private equity, and real estate platforms. The firm was founded in 1992 and is headquartered in New York City.
Credit Suisse was the financial advisor to Cerberus, FocalPoint was the financial advisor to Brooklyn Bedding, and Moelis & Company advised Helix.
The acquisitions of Brooklyn Bedding and Helix Sleep are expected to close early in the fourth quarter of 2021.
© 2021 Private Equity Professional | September 14, 2021
