SEALY TO ACQUIRE SAPSA, FRENCH BEDDING PRODUCER, FOR $40M.
The total purchase price is $40.4 million (45.8 million euros), including assumed debt of $10.4 million. For the fiscal year ended Sept. 30, 2000, Sapsa reported sales of $72.8 million.
Sapsa Bedding is a leading manufacturer of latex bedding products in Europe, with headquarters and manufacturing operations in France and Italy, as well as sales organizations in Spain, Germany, Belgium and the Netherlands. The company sells its bedding products to retailers under the Pirelli brand. It also sells latex and related products to other manufacturers around the world.
"We have viewed Europe as a key expansion market for some time," said Ron Jones, Sealy's chairman and chief executive officer. "Sapsa is a strong competitor in its markets and brings an experienced management team with a proven track record on which to build a presence in Europe.
"Our goal is to strengthen the Pirelli brand while also introducing Sealy-branded products to European retailers and consumers," Jones said. Sealy also plans to create a separate unit to service Sapsa's wholesale manufacturing customers, he added.
"We believe that our industry leadership in latex products, combined with Sealy's leading position in innerspring bedding systems, will be a powerful combination in the European marketplace," said Giovanni Gerosa, president directeur general of Sapsa Bedding.
The acquisition is the latest in a series of moves by Sealy to expand its international operations. In 2000, the company acquired Rozen S.R.L., a bedding producer in Argentina. Sealy also launched its own operations in Brazil and nearly doubled the size of its operations in Mexico, and it signed a joint venture agreement with its licensee in Australia last year to begin a marketing effort in 10 Asian countries.
"We are taking an aggressive but disciplined approach to international expansion," said Larry Rogers, vice president of Sealy's international bedding group.