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More M&A Info on Innocor

Bain Capital Purchases Memory Foam Maker Innocor from Sun Capital

Hooker Furniture, Mattress Firm and Z Capital made recent deals for home goods businesses

Bain Capital Private Equity is buying Innocor Inc., a manufacturer of foam and home furnishing products, from Sun Capital Partners Inc. While financial terms were undisclosed, the deal is expected to close in the first quarter of 2017.

Innocor, headquartered in Red Bank, New Jersey, is a producer of polyurethane foam products for a variety of industries. Through its Innocor Comfort consumer division and Innocor Foam Technologies commercial division, the target manufactures an array of products, including: memory foam mattresses, pillows, specialty sleep products, carpet cushions, furniture, kitchen and utility mats, and mattress toppers. Innocor markets its products under the Sleep Innovations and Novaform brands from the company’s 22 manufacturing plants and distribution centers across the U.S.

Bain Capital is a Boston-based private equity firm that has made more than 270 investments since its inception in 1984. The firm’s investment portfolio consists of companies across a variety of industries, including: consumer and retail, financial services, business services, healthcare, industrials, and technology media and telecommunications. Bain Capital recently sold Apple Leisure Group, a vacation hospitality conglomerate for the Caribbean and Mexico region, to private equity firms KKR & Co. (NYSE: KKR) and KSL Capital Partners LLC.

Sun Capital, founded in 1995, is a global private equity firm based in Boca Raton, Florida. The PE firm has more than $9.2 billion in capital under management and has invested in more than 300 companies across a variety of industries, including: consumer products and services, food and beverage, industrial, packaging, chemicals, building products, automotive, restaurant and retail. Sun Capital targets companies with between $50 million and $500 million in sales, but also targets companies with up to $1.5 billion in revenues.

Manufacturers of home furnishings are benefiting from trends that show an increase in new home sales in the real estate market. Recent deals for makers of home goods include: Z Capital Partners LLC’s investment in Twin-Star International Inc.; Hooker Furniture Corp.’s (Nasdaq: HOFT) agreement to buy Home Meridian International Inc. and Mattress Firm Holding Corp.’s (Nasdaq: MFRM) completed deal for rival Sleepy’s.

Sawaya Segalas & Co. LLC and Macquarie Capital are serving as financial advisers to Innocor, while Kirkland & Ellis LLP is acting as legal counsel. Barclays plc (NYSE: BCS) and Bank of America Merrill Lynch (NYSE: BOAC) are serving as financial advisers to Bain Capital Private Equity, while Ropes & Gray LLP is serving as legal counsel.