Cerberus Completes Acquisition of Brooklyn Bedding and Helix Sleep

Los Angeles, CA – Brooklyn Bedding LLC (“Brooklyn Bedding” or the “Company”), a vertically-integrated manufacturer and seller of mattresses, has been acquired by Cerberus Capital Management, L.P. (“Cerberus”). FocalPoint Partners (“FocalPoint”) served as Brooklyn Bedding’s exclusive financial advisor on the transaction. 

Founded in 1996, Brooklyn Bedding was one of the first manufacturers and roll-packers of eCommerce mattresses in the U.S. and has scaled its omnichannel business model to achieve rapid growth in the highly fragmented “bed-in-a-box” industry. Brooklyn Bedding’s flagship brand is sold direct-to-consumer ("DTC") through www.brooklynbedding.com and Company-owned retail stores, as well as through online marketplaces. Additionally, the Company provides co-manufacturing services for other eCommerce sleep brands.

Cerberus simultaneously acquired Helix Sleep, Inc. (“Helix”) and merged the two companies to form a leading DTC mattress platform. The combined business provides customers with a broad portfolio of high-quality offerings and superior end-to-end experiences. Brooklyn Bedding and Helix will continue to operate under the iconic brand names customers know and love as part of a vertically-integrated, scalable platform with best-in-class manufacturing and digital capabilities. John Merwin, CEO of Brooklyn Bedding, will lead the combined business, while Helix Founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will lead its DTC segment.

“We are thrilled to begin our next chapter with our great friends at Helix,” said John Merwin, the new CEO of the combined business. “Together, we will be able to provide our customers with an even better and more engaging mattress-buying experience through our combined capabilities and broad portfolio of quality offerings. The team at FocalPoint was instrumental in helping us drive this exceptional outcome.”

Duane Stullich, Managing Partner of FocalPoint, said, “Brooklyn Bedding’s foresight to control its own manufacturing has paid off as supply chains have been upended around the world with COVID-19. The Company has doubled down on this strategy with its new 650,000 square-foot facility planned to open in Q1 2022.” 

Adam Tishman, Kristian von Rickenbach, and Jerry Lin, who will lead the combined business’ DTC segment, added, “We built Helix around a mission to provide outstanding products through innovative, tailored experiences, and we are incredibly proud of what we have been able to deliver for our customers. Joining forces with Brooklyn Bedding and Cerberus will allow us to reach even greater heights while maintaining our customer-first culture.”

Scott Wille, Senior Managing Director on the Private Equity team at Cerberus, commented, “Brooklyn Bedding and Helix each bring talented teams, market-leading products, and strong reputations to this combination. We look forward to supporting them as they continue to leverage their strengths and share their best-in-class capabilities to become the leader in the DTC mattress category.”

FocalPoint Partners served as exclusive financial advisor to Brooklyn Bedding, and Moelis & Company served as exclusive financial advisor to Helix. Credit Suisse and Houlihan Lokey served as financial advisors to Cerberus.

About Brooklyn Bedding

Brooklyn Bedding pioneered bed-in-a-box online delivery in 2008. Today, the Company has world-class expertise in mattress engineering, achieved through meticulous attention to detail, cutting-edge equipment, and patented materials created with advanced technology. Brooklyn Bedding designs and creates its entire line of high-quality bedding on demand in its manufacturing facility in Phoenix. In 2021, the Company expanded to a new manufacturing facility in Glendale, Arizona, designed to triple production capacity. To learn more about Brooklyn Bedding and its suite of product offerings, please visit www.brooklynbedding.com.

About Helix Sleep

Helix is an innovative direct-to-consumer brand platform, operating a portfolio of sleep and home goods brands. The company’s flagship brand, Helix Sleep, launched in 2015 with the goal of bringing customization to the category through personalized mattresses for customers, based on how they sleep. Each mattress is designed for body type, sleeping position, and "feel preference" using proprietary sleep technology. Birch by Helix launched in 2019 as the company’s all-natural and sustainable sleep brand, with 100% organic certified products. For more information about Helix and the company’s products, visit www.helixsleep.com.

About Cerberus Capital Management

Founded in 1992, Cerberus is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. The firm invests across the capital structure where integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Cerberus' tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for investors. To learn more about Cerberus' people and platforms, visit www.cerberus.com.

About FocalPoint Partners

FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings, and special situation transactions. With offices in Los Angeles, Chicago, New York, and Shanghai, the firm provides financial advisory services to middle market clients and has a dedicated Consumer practice. Since its inception in 2002, FocalPoint has completed transactions with an aggregate value of more $15 billion. For more information, please visit https://focalpointllc.com and follow us on LinkedIn and Twitter.

Please contact Duane Stullich, Managing Partner, at 310-405-7070 or Will Bower, Director, at 310-405-7026, for more information regarding this transaction.