15 of 15
BACKNEXT
Mattress maker says goodnight
Simmons Co., the second largest mattress maker, has been losing a lot of sleep during the downturn. On Sept. 25, the company announced plans to file for Chapter 11 bankruptcy and create a restructuring plan to slash the company's $1 billion debt to $450 million.

The normally stable mattress industry has seen the worst downturn in its history, according to SunTrust Robinson Humphrey analyst Keith Hughes. But, he says, "maybe the worst has passed" since sales seem to be stabilizing.

Private equity firm Ares Management and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, will acquire the Atlanta-based company for $760 million.

Simmons, owned by Boston private equity firm Thomas H. Lee Partners since 2003 and five other private equity firms prior, reported it had $67.3 million of cash on hand at the end of the second quarter of 2009, but less than $100,000 available to borrow under a senior credit facility.

The company celebrated for modernizing the industry with its no-flip mattress was founded in 1870 by Zalmon Simmons in Kenosha, Wisc., as producer of cheese boxes and wooden insulators producer.

The company got into wire-woven mattresses six years later, grew to run manufacturing plants nationally in 1919 and created the coil spring Beautyrest mattress in 1925.

More galleries

Last updated September 25 2009: 2:55 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
The 13 most WTF gadgets From the weird to the gross, these 13 gadgets will make you wonder why the even exist. More
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More
America's most powerful cars A new 'horsepower war' has erupted among U.S. automakers and these are the most potent weapons in their arsenals. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.