Anatomic Global Gets Capital Infusion

June 9, 2011  by in UnCategorized   

By Home Furnishings Business in Mattresses on June 10, 2011

Mattress maker Anatomic Global has entered an agreement providing funding of up to $20 million to reduce debt, fund working capital, launch new branding and merchandising programs and invest in new equipment.

According to a company release, Anatomic Global's sales have increased more than 50 percent each of the past two years, but that growth has presented challenges that the new investment will correct.

"It is a good problem to have, but a challenging one nonetheless; rising sales and having the funding requirements to support the growth," said Corona, Calif.-based Anatomic Global Chairman and CEO David Farley. "This agreement will allow us to relieve all of our short term cash burdens and to pick up the pace of investment in our brand and infrastructure. Having the ability to bring in additional funding beyond the initial tranche over the next five years based on our performance makes this deal a real home run."

Under terms of the transaction, a new corporation, Anatomic Holdings Inc. has been formed. FXI Holdings Inc. is a part of the new enterprise and Farley remains chairman and CEO. In terms of debt reduction, the company will reduce a multi-million dollar credit obligation to a key supplier, dating back to the launch of its consumer business two years ago.

In terms of corporate branding, the company is planning a significant product introduction at this summer's Las Vegas Furniture Market and a more comprehensive rebranding for early 2012. Anatomic is also planning to add equipment to its manufacturing site to increase operational performance.

"The memory foam sector continues to just explode and we are thrilled by the retailer consumer response to our products," Farley added. "We are excited by the new structure of our business as it will assure our ability to keep pace with this brisk growth and with our business plan that has us breaking through the $100 million sales range during the next five years."