According to a Feb. 26 news release, FXI Inc. and Innocor are now a fully operational, blended company and “the preeminent vertically integrated mattress and topper manufacturer in the fast-growing bedding industry.” Now operating under the name FXI, the two polyurethane foam and finished products producers initially disclosed plans to merge in the first quarter of 2019.
Each company has operated separately since that time, pending approval of the deal — valued at $850 million — by the U.S. Federal Trade Commission. FTC consent came in February, following the companies’ agreement to reduce anticompetitive effects by divesting three plants to competitor Future Foam. These included FXI’s foam-pouring plant in Kent, Washington, and Innocor’s foam-pouring plants in Elkhart, Indiana, and Tupelo, Mississippi.
The deal was forged by FXI owner One Rock Capital Partners LLC and Innocor owner Bain Capital Private Equity. The former is majority owner of the new entity, with Bain holding a minority stake.
A central focus of the newly formed company, which now is headquartered in Radnor, Pennsylvania, is on the evolving boxed-bed segment, the release said. Innocor established itself as a successful player in the consumer products arena with its Novaform and Sleep Innovations boxed-bed brands. The new company is expanding its focus as a supplier to other boxed-bed brands and companies. “(FXI) is a leading comfort technology supplier to home furnishings providers, including wholesale bedding manufacturers, DTC mattress providers and furniture retailers, OEMs and fabricators,” according to the release.
“This is an incredibly exciting day for FXI, its talented employees and valued, longstanding partners,” said Harold Earley, FXI president and chief executive officer. “As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently. We will continue to emphasize operational excellence, putting our customers first and investing in R&D to develop new products, chemistries, processes and applications. Ultimately, the new FXI will leverage our combined expertise to deliver comfort, wellness and style to consumers across categories.”
The company has 34 facilities and 4,000 employees in North America. In addition to bedding and furniture, FXI also supplies the acoustics and filtration, health care and transportation markets. Previously, FXI Inc. had headquarters in Media, Pennsylvania, and Innocor was based in Red Bank, New Jersey. More details about the new FXI are available at its just-launched website, FXI.com.
