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Dormeo Closes Equity Stake with Sinomax USA
September 17,
2015 by in Business Strategy, Industry 
Plano, Texas-based Dormeo NA has closed an equity stake deal with Houston-based Sinomax USA, a manufacturer of memory foam lifestyle and comfort products, resulting in a large capital investment in the business.
Dormeo plans to expand production in its Winchester, Va., facility, tripling output during the next 60 days.
“Sinomax’s strong financial commitment to Dormeo, in conjunction with their vast global supply chain, infrastructure and resources will provide us with significant advantages in further market penetration, brand awareness and supply chain efficiencies,” said Jon Stowe, CEO of Dormeo. “This transaction marks a very important step in significantly accelerating the commercial opportunity for Dormeo, which will help to ensure that consumers in the North American market will be able to purchase our superior sleep solutions at an ever increasing number of retail locations across the continent.”
Frank Chen, CEO of Sinomax USA, and Kelvin Lam, CFO of Hong Kong-based Sinomax Group, will join the Dormeo board as part of the transaction.
“We have been strong admirers of the Dormeo brand since it introduced its highly differentiated Octaspring technology to the U.S. market in 2012,” Chen said. “We have been very impressed with the traction of the Dormeo brand and the Octaspring technology in the U.S. and Canadian markets and foresee a very significant growth path for Dormeo going forward.”