Advent International acquires King Koil China

CITIC Capital Partners has sold King Koil China to Advent International. No financial terms were disclosed. BDA Partners provided financial advice to CITIC on the transaction. King Koil China is a maker and seller of mattresses in China.

PRESS RELEASE

(Shanghai, 01 November 2016) CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, is pleased to announce that its fund has completed the sale of its controlling stake of King Koil Shanghai Sleep System Co., Ltd (“King Koil China” or “the Company”) to Advent International. The investment was made through CITIC Capital China Partners II, L.P., its second China-focused buyout fund. Terms of the transaction were not disclosed. BDA Partners acted as exclusive financial advisor to CITIC Capital Partners.

Based in Shanghai, King Koil China is a 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. King Koil, a leading US brand founded in 1898, 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.

CITIC Capital Partners acquired King Koil China in June 2014. Over the past two years, CITIC Capital Partners has focused on growing the Company’s business through expansion of its retail coverage, strengthening its brand recognition, streamlining operational systems and establishing stronger alliances with leading retailers and shopping mall developers by leveraging CITIC Capital’s resources. With the support of CITIC Capital Partners, King Koil China has successfully expanded its business in China market and further enhanced its industry leadership. King Koil China has recently established its first flagship store at a shopping mall in Shanghai and has been voted as the top luxury hotel supplier by frequent travelers.

Yichen ZHANG, Chairman and CEO of CITIC Capital Holdings Limited, said: “It has been our pleasure working with the management and other shareholders of King Koil China in the last two years. Under CITIC Capital Partners’ ownership, King Koil China has demonstrated robust growth and profitability, especially in the key hotel contract and retail sector markets. We believe King Koil will continue to see tremendous growth potential on the back of a solid foundation and the support and resources of the new partner.”

Stephen WANG, CEO and Co-founder of King Koil China said, “We would like to thank CITIC Capital Partners for its contribution to our business in the past and are delighted to welcome such an experienced and growth-oriented private equity firm as our new investment partner. The mattress market in China is large and fragmented, but growing.

With Advent’s support, we will continue to focus on our core competencies that drive growth and operational efficiency, allowing us to consolidate the market and further increase both our footprint and market share in the premium mattress segment.”

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. King Koil, a leading US brand founded in 1898, 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 USD7.9 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, Shenzhen, Tokyo and New York. 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 USD3.6 billion of committed capital on behalf of over 60 international investors. CITIC Capital Partners’ funds invest globally and work with management teams to help companies realize their full potential.