FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sherwood Bedding Company (Sherwood), today announced a strategic investment from Steinhoff (FRANKFURT: SNH), representing a majority ownership in Sherwood. Sherwood is the fifth largest mattress manufacturer in the U.S. The partnership between the two companies represents the first U.S. mattress manufacturing investment by Steinhoff International.
Steinhoff, an integrated retailer that manufactures, sources and sells furniture, household goods and clothing in Europe, Africa and Australasia, announced in September the completion of an agreement to acquire Mattress Firm, the largest mattress retailer in the U.S. The investment in Sherwood marks an expansion of the Company’s North American operations in the mattress category, specifically in their manufacturing division. Sherwood, a third-generation independently owned bedding manufacturer, operates four manufacturing facilities across the U.S., with plans to open more in the Northeast and Northwest, and serves as a manufacturing partner for several leading retailers.
“We are extremely excited to partner with Steinhoff to continue to grow our mattress business,” said Neil Ellman, co-president of Sherwood. “With their deep industry experience, we will focus on accelerating our growth plans and further integrating vertically into raw materials.”
Lance Ellman, co-president of Sherwood added, “This was an opportunity to take on a partner that will work with Sherwood and our management team to expand for the future. Existing management along with Neil and I will continue to operate the business and we are excited about the long-term growth of the company. Steinhoff brings a worldwide network of suppliers to the table. We believe this will enable us to continue to offer exceptional value to all of our customers.”
The transaction is expected to close by July 15, 2017.
About Sherwood Bedding Company
Sherwood, a third-generation independently owned bedding manufacturer, operates manufacturing facilities across the U.S. and serves as a manufacturing partner for several retailers. Sherwood built world-class manufacturing facilities, featuring high-speed computerized equipment with automation in essential areas of manufacturing which increased quality and controls cost.
About Steinhoff International
Steinhoff International is an integrated retailer that retails, manufactures and sources furniture, household goods and general merchandise in Europe, Australasia, the United States of America, and Africa. Its operations are positioned towards the mass-market, value-conscious consumer segments providing them with affordable products through a vertically integrated supply chain. Steinhoff International has in excess of 11,000 retail outlets in more than 40 retail brands in more than 30 countries, supported by approximately 130,000 employees.
Steinhoff International’s three operating segments are:
- Household goods: furniture and homeware retail businesses;
- General merchandise: clothing and footwear, accessories and homeware retail businesses;
- Automotive: dealerships and rental outlets in southern Africa providing vehicles, parts, insurance, accessories, servicing and car rental.
Steinhoff International has a listing on the Frankfurt Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.