CANADA/US - A unit of the Ontario Teachers' Pension Plan (OTPP) will take a stake in Simmons, the US-based mattress maker said as it outlined its bankruptcy and restructuring plans.
Simmons plans to be sold to Teachers' Private Capital, OTPP's private equity arm, and Ares Management in a US$760m deal.
Simmons said the funds from the acquisition would allow it to cut its debt down to $450m from $1bn. The company said its restructuring process will include a bankruptcy filing in US courts.
Teachers' Private Capital senior vice president Erol Uzumeri said: "Simmons' historical performance is excellent when measured against our core investment criteria, and we are confident this investment will deliver sustainable value."
Ares senior partners Bennett Rosenthal added: "Simmons' prestigious brand name, innovative products, strong and experienced management, as well as positive fundamentals we see for the industry, are characteristics that make it a very attractive investment to us."
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