Cerberus Capital Management announced plans to acquire Brooklyn Bedding and Helix Sleep, and it will combine the two companies to develop a DTC platform that gives consumers access to both brands. The deal is expected to close in the fourth quarter of this year.
Brooklyn Bedding and Helix will continue to operate under their respective brand names, and the combined company will be led by John Merwin, current CEO of Brooklyn Bedding. Helix’s co-founders Adam Tishman, Kristian von Rickenbach, and Jerry Lin will lead the direct-to-consumer segment of the combined business.
“We have long admired Helix and are excited to be teaming up with them,” Merwin said. “Helix’s innovative business model has driven extraordinary growth, and its high-quality products have made it a trusted brand to customers. Supported by Cerberus’ operational and technology expertise, our combined platform will be able to capture significant growth opportunities and deliver even greater mattress-buying experiences for our customers.”
Family-owned since 1995, Brooklyn Bedding’s vertical model includes an omnichannel platform supported by 18 brick-and-mortar stores. Earlier this year, the company began construction on a new 648,165-square-foot factory in Glendale, Arizona, which is expected to open in December.
Helix creates custom-made mattresses through its digital experience and analytics-focused marketing strategy. Together, the combined company will offer customers Brooklyn Bedding’s and Helix’s products through a vertically integrated, scalable platform supported by manufacturing and digital capabilities.
“Our vision has always been to sell exceptional home and sleep products to our customers, so that they can enjoy the moments that matter with the people they love,” said the Helix cofounders. “We know firsthand that Brooklyn Bedding shares a similar customer-first mission and is one of the finest manufacturers of mattresses in the country. The integration of our two organizations and Cerberus’ partnership will enable us to become a category leader that provides customers with innovative new products and first-class service.”
Scott Wille, senior managing director at Cerberus, added: “This is an exciting opportunity to combine two incredible businesses with highly complementary capabilities. Brooklyn Bedding and Helix will bring together their respective strengths to meet the growing demand in the DTC mattress market. Together, the company will deliver expertly crafted products made in the U.S.A. and world-class customer experiences. We look forward to working alongside this leadership team as they build on their shared mission and help even more customers on their mattress-shopping journey.”
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