Cerberus Capital Management has acquired Brooklyn Bedding and Helix Sleep and merged them to form a direct-to-consumer mattress platform. No financial terms were disclosed. Credit Suisse served as financial advisor to Cerberus on the deal while FocalPoint Partners served as financial advisor to Brooklyn Bedding. And Moelis & Company LLC served as financial advisor to Helix.
Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”) today announced that one of its affiliates has completed a previously announced series of related transactions through which it has acquired each of Brooklyn Bedding LLC (“Brooklyn Bedding”) and Helix Sleep, Inc. (“Helix”) and combined them to form a leading direct-to-consumer (“DTC”) mattress platform.
The combined business provides customers with a broad portfolio of high-quality offerings and superior end-to-end experiences. Brooklyn Bedding and Helix will continue to operate under the iconic brand names customers know and love as part of a vertically integrated, scalable platform with best-in-class manufacturing and digital capabilities. John Merwin, CEO of Brooklyn Bedding, will lead the combined business, while Helix’s co-founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will lead its DTC segment.
“We are thrilled to begin our next chapter with our great friends at Helix,” said John Merwin, the new CEO of the combined business. “Together, we will be able to provide our customers with an even better and more engaging mattress-buying experience through our combined capabilities and broad portfolio of exceptional offerings. This is a powerful partnership that is further strengthened by Cerberus’ support and we look forward to the many benefits it brings to our teams, partners, and importantly, customers.”
Adam Tishman, Kristian von Rickenbach and Jerry Lin, who are leading the combined business’ DTC segment, added: “We built Helix around a mission to provide outstanding products through innovative, tailored experiences, and are incredibly proud of what we have been able to deliver for our customers. Joining forces with Brooklyn Bedding and Cerberus will allow us to reach even greater heights while maintaining our customer-first culture.”
Scott Wille, Senior Managing Director at Cerberus, commented: “Brooklyn Bedding and Helix each bring talented teams, market-leading products, and strong reputations to this combination. We look forward to supporting them as they continue to leverage their strengths and share their best-in-class capabilities to become the leader in the DTC mattress category.”
Credit Suisse served as exclusive financial advisor, Houlihan Lokey Capital, Inc. served as placement agent, and Simpson Thacher & Bartlett LLP served as legal advisor to Cerberus. FocalPoint Partners served as financial advisor and SheppardMullin served as legal advisor to Brooklyn Bedding. Moelis & Company LLC served as exclusive financial advisor and Bass, Berry & Sims PLC served as legal advisor to Helix.
Founded in 1992, Cerberus is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.