Sealy Calls for Board Shake-Up

Sealy Corp‘s second-largest shareholder has called for a shake up of the board, blaming the mattress maker’s private-equity backer and largest shareholder, KKR, for the company’s poor performance, the Wall Street Journal said, writes Reuters. H Partners Management, which holds 14.5 percent of the company’s shares, said in a letter to the board that KKR has loaded Sealy with debt, missed opportunities to expand and extracted hefty fees as the company has struggled, writes Reuters. KKR currently holds a 46.2 percent stake in Sealy.

Reuters – Sealy Corp’s second-largest shareholder has called for a shake up of the board, blaming the mattress maker’s private-equity backer and largest shareholder, KKR & Co, for the company’s poor performance, the Wall Street Journal said.

H Partners Management LLC, which holds 14.5 percent of the company’s shares, said in a letter to the board that KKR has loaded Sealy with debt, missed opportunities to expand and extracted hefty fees as the company struggled.

KKR currently holds a 46.2 percent stake in Sealy.

A KKR spokeswoman declined to comment to the Wall Street Journal on Sunday. However, a Sealy representative told the Journal that the company’s management and board “have heard and considered H Partners’ concerns over the past few months, and will consider H Partners’ latest comments with appropriate care.”

The letter to the board is expected to be filed with securities regulators on Monday morning, the Wall Street Journal said, citing people familiar with the matter.

Sealy and KKR could not immediately be reached for comment by Reuters outside business hours.