Carthage, Missouri – US Bed maker, Leggit & Platt plans to buy foamer Elite Comfort Solutions from Arsenal Capital Partners for $1.25 bn in cash.
If regulators approve, the deal will close in January 2019.
It has a network of 16 facilities across the US where it makes specialty foams and products.
The company’s annual sales in the year to September 2018 were $611 m.
Leggett & Platt manufactures a range of products, including bedding components, adjustable beds and bedding industry machinery; automotive seat support and lumbar systems; components for home and work furniture; flooring underlay; and high-carbon drawn steel wire.
L&P’s president and CEO, Karl Glassman, said the acquisition will make his company a stronger supplier to the bedding industry. ‘[We will] gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses,’ he said.
It will also help capitalise on current market trends, he added. These include the increasing use of hybrid and specialty grade foam technology in conventional and bed-in-a-box mattresses.
John Televantos, partner at Arsenal, said: ‘We have built ECS to be the innovator in polyurethane foam and bedding markets. We are delighted to see a great permanent home for ECS and its employees.
‘Leggett & Platt is uniquely capable of continuing and strengthening the path we set for ECS, and we expect that the long history and great value they bring to the bedding industry will be enhanced with this acquisition.’