In the final quarter of 2021, New York-based private equity firm Cerberus Capital Management L.P. is expected to acquire manufacturer and retailer Brooklyn Bedding LLC and online brand Helix Sleep Inc. Terms of the deals were not disclosed.
According to a news release, the resulting combined holding company “will be a leading direct-to-consumer mattress platform with a broad portfolio of high-quality offerings and superior end-to-end experiences.”
Brooklyn Bedding and Helix will continue to operate under their respective brand names and their founders retain minority ownership. John Merwin, chief executive officer of Brooklyn Bedding, will lead the new entity. Helix co-founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will manage the direct-to-consumer portion of the business.
“This is an exciting opportunity to combine two incredible businesses with highly complementary capabilities,” said Scott Wille, Cerberus senior managing director. “Brooklyn Bedding and Helix will bring together their respective strengths to meet the growing demand in the DTC mattress market. Together, the company will deliver expertly crafted products made in the United States and world-class customer experiences. We look forward to working alongside this leadership team as it builds on its shared mission and help even more customers on their mattress-shopping journey.”
Established in 1992, Cerberus has more than $55 billion in assets spread across a range of investment strategies. Phoenix-based Brooklyn Bedding was started by brothers John and Rob Merwin as a mattress liquidator in 1995. They grew the company into a well-known mattress brand with two production plants and a sizeable wholesale and direct-to-consumer business. Online brand Helix Sleep launched in 2015 as a “customizable boxed bed” and has managed to flourish in an intensely competitive landscape.