Advent’s $3bn mattress deal gives buyout market a bounce

City A.M. Reporter
A GROWING appetite for secondary buyouts was underscored yesterday as Advent International has agreed to acquire a majority stake in mattress company AOT Bedding Super Holdings, in a deal that values the firm at $3bn (£1.9bn).

Current investors in the mattress manufacturer are Ares Management LLC and the Ontario Teachers’ Pension Plan, which will retain a minority equity stake after the transaction.

The transaction, expected to be completed by the fourth quarter, demonstrates rising activity in secondary buyouts – sales from one private equity firm to another.

The industry is flush with capital it is looking to put to work, and the market for initial public offerings remains choppy.

Barclays acted as lead financial adviser, while Deutsche Bank Securities and Morgan Stanley were co-advisers to AOT Bedding Super Holdings.