From Home Furnishing Business
Brooklyn Bedding and Helix Sleep to Form Combined Company
Upon completion of the transactions, the businesses will operate under a holding company structure in partnership with their respective founders, as well as other existing shareholders, who will retain a significant minority ownership interest in the combined business on a going forward basis.
The combined company will be a leading direct-to-consumer (DTC) mattress platform that will provide customers with a broad portfolio of high-quality offerings and superior end-to-end experiences.
Brooklyn Bedding crafts expertly-made bedding with its cutting-edge equipment and patented materials and distributes its products through an omni-channel platform. Helix designs and provides custom-made mattresses through a tailored digital experience and analytics-focused marketing strategy. Together, the combined company will offer customers Brooklyn Bedding’s and Helix’s leading products through a vertically integrated, scalable platform supported by best-in-class manufacturing and digital capabilities.
Brooklyn Bedding and Helix will continue to operate under their respective brand names and the combined company will be led by John Merwin, current chief executive officer of Brooklyn Bedding. Helix’s co-founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will lead the DTC segment of the combined business.
"We have long admired Helix and are excited to be teaming up with them," said 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."
Adam Tishman, Kristian von Rickenbach and Jerry Lin, co-founders of Helix, commented: "Our vision has always been to sell exceptional home and sleep products to our customers, so that they can enjoy the moments that matter with the people they love. We know firsthand that Brooklyn Bedding shares a similar customer-first mission and is one of the finest manufacturers of mattresses in the country. The integration of our two organizations and Cerberus’ partnership will enable us to become a category leader that provides customers with innovative new products and first class service."
Scott Wille, senior managing director at Cerberus, added: "This is an exciting opportunity to combine two incredible businesses with highly complementary capabilities. 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 U.S.A. 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."
The transactions are expected to close early in the fourth quarter of 2021, subject to the satisfaction of all regulatory and other customary closing conditions.