CITIC Capital Partners acquires King Koil Shanghai

CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, has acquired a controlling stake in King Koil. No financial terms were disclosed. Based in Shanghai, King Koil is a maker and seller of mattresses in China.

PRESS RELEASE

(Shanghai, 18 August 2014) CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, is pleased to announce its purchase of a controlling stake in King Koil Shanghai Sleep System Co., Ltd (“King Koil” or “the Company”). The investment was made through CITIC Capital China Partners II, L.P., its second China-focused buyout fund.

King Koil is a Shanghai-based manufacturer and retailer of premium mattresses in China and the exclusive licensee of several international mattress brands such as “King Koil”, “Aireloom”, and “Life Balance” in China. The Company owns the Chinese trademark for King Koil, a leading US brand founded in 1898. King Koil is one of the best-known premium mattress brands globally and is well-recognized by Chinese professionals. The Company is also the leading player in supplying premium sleep products to luxury hotels in China.

Yichen ZHANG, Chairman and CEO of CITIC Capital Holdings Limited, said: “King Koil is a leading player in the premium mattress segment with strong brand recognition and a highly-skilled management team. We look forward to partnering with the management and other shareholders to strengthen the leadership in the hotel contract market and aggressively grow the retail sector in the coming years.”

The China retail mattress market is expected to grow at over 15% p.a. in the next five years and at an even higher growth rate for the premium segment. As luxury hotel chains are also projected to pursue aggressive expansion plans in China, King Koil is well-positioned to capture these growth opportunities given its strong presence in the high-end hotel segments and strong brand recognition in China premium mattress market.

“We were very impressed by CITIC Capital’s resources and commitment,” said Stephen WANG, Managing Director of King Koil. “The highly-fragmented mattress market in China is currently undergoing rapid consolidation and we look forward to working with our new shareholder to become a major force in the market in future. King Koil is committed to bringing the best quality sleep products to our Chinese customers.”

Terms of the transaction were not disclosed.

About King Koil Shanghai Sleep System Co., Ltd.
Established in Shanghai in 2000, King Koil Shanghai Sleep System Co., Ltd. is a manufacturer and retailer of premium mattresses in China and is the exclusive licensee of several international mattress brands such as “King Koil”, “Aireloom”, and “Life Balance” in China. It also owns the Chinese trademark for King Koil, a leading US brand founded in 1898. King Koil is one of the best-known premium mattress brands globally and has received many prestigious distinctions, including endorsements from the International Chiropractors Association (ICA) and the Foundation for Chiropractic Education and Research (FCER). For more information, please visit www.kingkoil.com.cn.

About CITIC Capital Holdings Limited
Founded in 2002, CITIC Capital Holdings Limited, is an alternative investment management and advisory company. The firm manages over USD4.5 billion of capital from a diverse group of international institutional investors. Core businesses include Private Equity, Real Estate, Structured Investment & Finance, Asset Management and Venture. CITIC Capital currently employs over 200 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Tokyo and New York. It is owned by China Investment Corporation, China’s sovereign wealth fund, and CITIC Group, the largest Chinese conglomerate through its CITIC International Financial Holdings Limited, CITIC Pacific Limited subsidiaries, and Qatar Holding LLC. For more information, please visit www.citiccapital.com.

About CITIC Capital Partners
CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, operates in China, the United States and Japan, and currently manages USD2.6 billion of committed capital on behalf of over 50 international investors. CITIC Capital Partners’ funds invest globally and work with management teams to help companies realize their full potential.

 

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