Advent Narrows Bidders for $2 Billion Mattress Maker King Koil China

Advent International has shortlisted KKR & Co. and Blackstone Group Inc. among suitors for its mattress business King Koil China that could be valued at as much as $2 billion in a sale, according to people familiar with the matter.

Affinity Equity Partners and Hillhouse Capital were also picked to proceed to the next round of bidding, said the people, who asked not to be identified as the information is private. Bain Capital and PAG, a Hong Kong-based alternative asset manager, are among the shortlisted bidders as well, the people said.

FountainVest Partners is teaming up with Ontario Teachers’ Pension Plan for a bid for the mattress maker and the consortium is also heading into the next round, the people said. Brookfield Asset Management Inc. was also chosen for the shortlist, one of the people said.

Advent International has been in talks with advisers about a prospective deal for King Koil China, Bloomberg News reported in February. The U.S. buyout firm was considering options including a sale, initial public offering as well as a consolidation of the mattress maker with the Chinese unit of Serta Simmons Bedding LLC.

Founded in 1984, Advent International has invested $56 billion across 42 countries, according to its website. The fund bought a majority stake in King Koil China from Citic Capital Partners in 2016 for an undisclosed amount, according to a statement.

The King Koil brand traces its roots to 1898. King Koil China, which was set up in 2000, is the exclusive licensee of several international mattress brands such as King Koil, Aireloom and Life Balance in the world’s second-biggest economy.

Deliberations are ongoing and the companies could decide against any offers, the people said. Representatives for Advent, Bain, Blackstone, Brookfield, KKR, Ontario Teachers’ Pension Plan and PAG declined to comment. A principal at Affinity declined to comment. A spokesperson for Hillhouse couldn’t immediately comment.

©2021 Bloomberg L.P.

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