BREAKING NEWS
AI Dream, a branded sleep solution provider and one of the largest companies in the global premium mattress market, has acquired Avondale, Arizona-based King Koil, a U.S. manufacturer of premium mattresses, from KPS Berhad, a Malaysia-based investment holding company.
The transaction will accelerate the U.S. domestic growth of King Koil while providing AI Dream expansion opportunities in new markets outside of Asia. All of King Koil’s current management team will remain with the company and the company will retain its name.
Formed in 2018 and acquired by Asia-based private equity firm Hillhouse Investment in 2021, AI Dream is a multibrand sleep solution platform distributing global premium mattress brands King Koil, Serta and Ruf Betten in Asia and Europe. AI Dream’s product offering includes mattresses, bed frames, smart beds and customized bedroom solutions.
“Our strategy of developing King Koil as a premium brand with exceptional design and innovation has been recognized internationally,” said David Binke, chief executive officer of King Koil. “AI Dream’s investment will provide us with the capital to make strategic decisions to accelerate our growth.”
Edward Wu, AI Dream CEO, said, “The acquisition of King Koil is part of AI Dream’s strategic plan to acquire and develop a self-owned premium brand. Going forward we envision enhancing King Koil’s global digital channels, introducing smart products and optimizing the brand’s operations to accelerate its growth.”
Sean Carney, partner and head of global investment at Hillhouse Investment, added: “AI Dream has the capital and strategic vision to support King Koil’s future growth. The acquisition also serves as an important step forward for AI Dream as it expands its footprint internationally.”
“King Koil and its current management team have made tremendous strides to become a leader in the luxury mattress segment and we are very happy to have played an important role in that growth and development,” said KPS Berhad’s Managing Director/Group CEO Ahmad Fariz Hassan. “With the new ownership having vast business exposure and deep sector experience, there will be greater opportunity for King Koil’s growth and will put the brand on a higher growth trajectory, while creating lasting value for its stakeholders.”
A leading global mattress manufacturer, King Koil supports more than 23 licensees in more than 80 countries where King Koil mattresses are manufactured and sold. The company has a long, rich history that reaches back to 1898 when Samuel Bronstein founded United States Bedding in St. Paul, Minnesota. What started out as six employees in a small factory has continued to grow.
During the 1930s, U.S. Bedding improved the bedspring and was looking for a new name for its product. From there, the King Koil name was born.
AI Dream is a leading premium sleep solution provider in Asia and operates a portfolio of globally recognized brands, including Serta, King Koil and Ruf Betten. AI Dream has a comprehensive offering of premium, top-quality sleep system products, including mattresses, bed frames, adjustable foundations, pillows and more. With a consumer centric marketing approach and an omni-channel strategy, AI Dream’s extensive distribution network reaches all the places where consumers might engage with our products, at home and when traveling. At the end of 2020, AI Dream had ~2,300 branded stores in more than 600 cities, 1,300+ luxury hotels and resort partners, and a leading market position on major e-commerce platforms.
Hillhouse Investment is a long-term investor dedicated to partnering with quality business leaders for global growth. With nearly two decades of experience, Hillhouse collaborates with industry-defining enterprises, aiming to establish alignment and build sustainable, forward-thinking companies across healthcare, business services, consumer and industrial sectors. Hillhouse has a broad platform of alternative investment strategies from public equities to private equity (venture, growth, buyout), real assets and private credit. The firm manages capital for global institutions, including non-profit foundations, endowments and pensions.
Founded in 1975, Kumpulan Perangsang Selangor Berhad (KPS Berhad) is a global investment holding company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. KPS Berhad has core investments in the manufacturing sector. While enhancing shareholder value by optimising returns, KPS Berhad is committed to contributing toward sustainable economic, environmental and social development.
Read more on King Koil, King Koil Launches Next Generation of SmartLife.
