Let's Sleep On It: Notes on Mega-Mattress M&A

Ares Management and Teachers’ Private Capital today announced a $730 million agreement to buy mattress maker Simmons from THL Partners. Some notes: *** Ares/Teachers plan to put both Serta and Simmons under the same super holdco, but will operate them as separate, independent entities. Were they merged, it would become the nation’s largest mattress manufacturer (title currently held by KKR’s Sealy). No idea how Ares/Teachers will actually manage the obvious conflicts of interest. For example, will Ares’ Simmons reps not look at their own funds’ quarterly reports that contain confidential info on Serta, and vice versa?

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