Capstone Partners is pleased to announce the closing of a $142.5 million senior credit facility financing for Corsicana Bedding LLC (Corsicana or the Company), the proceeds of which funded the acquisition of Eastern Sleep Products (dba Symbol Mattress or Symbol), a Richmond, VA based manufacturer of mattresses and related bedding products, and support the Company’s ongoing working capital needs.
Founded 50 years ago, Corsicana is a Dallas, TX-based manufacturer of mattresses and foundations that offers a full range of products featuring the latest in sleep technology, including innerspring, memory foam, air bladder and hybrid models at significant value to comparable branded products. The Company is considered the nation’s largest private label mattress manufacturer, serving a diverse base of more than 3,500 customers across the country. The Company sells its products through all major sales channels including specialty bedding stores, furniture retailers, rent-to-own stores, department stores, wholesale distributors, other consumer goods retailers and various e-Commerce platforms. The acquisition of Symbol adds several additional channels, including colleges and direct-response television.
“We are aggressively pursuing our House of Brands strategy and Symbol—with its robust product offering and extensive distribution presence—will immediately have an accretive impact on our business,” said Corsicana CEO Mike Thompson.
The combination creates a powerhouse organization which will now rank among the nation’s top five largest bedding producers while solidifying Corsicana’s leadership position serving independent bedding retailers in the Value (under $1,000 retail price point) segment of the market.
The acquisition will also broaden Corsciana’s geographical footprint across 16 regionally based manufacturing plants while allowing access to new distribution channels and strengthening its industry market position. In particular, Symbol has a strong position in selling mattresses in the home shopping channels, in the direct-to-consumer business with its Luuf boxed bed brand and Tommie Copper brand, and in the college and university housing area.
Corsicana is majority-owned by Long Point Capital, a private equity investment firm with offices in New York and Michigan, which led a recapitalization of the Company in 2016.
Capstone Partners served as financial advisor to the Company in connection with the debt financing utilized in the acquisition of Symbol and the refinancing of its existing debt facilities. The terms of the acquisition and related financing were not disclosed.