* Simmons see bankruptcy exit in 60 days * join several mattress companies to file for bankruptcy * buyers Ares, Teachers Private Capital own competitors Serta Canada * and Puerto Rico business are not covered by the application
New, date line and connection added)
Jonathan stappel and Ajay kamakaran, New York, November 16 (Reuters)-
Simmons Co, a Beautyrest mattress and other bedding maker, has filed for bankruptcy protection and is expected to be sold to two buyers in a deal worth about $0. 76 billion.
Private equity firm Ares Management LLC and the teacher private capital division of the Ontario Teacher pension scheme will acquire Atlanta-
Simmons, who served in a pre-packaged restructuring plan.
Simmons filed an 11-chapter protection application with the United States on Monday. S.
Delaware bankruptcy court is expected to be established within 60 days.
The company said the document does not include operations in Canada and Puerto Rico and will not affect day-to-day operations. The 139-year-
The old company is now owned by Thomas H Lee Partners LP, a private equity firm. THL. UL]
It was bought in 2003 for $1.
Ares and Teachers\' Private Capital will become the seventh largest owner of Siemens within 24 years.
As a result of the weak economy resulting in a reduction in consumer spending on large mattresses, the sales of mattress manufacturers fell sharplyticket items.
Simmons is also struggling with rising raw materials and fuel costs.
Simmons said the company had $0. 9 billion in assets and $1 billion in debt as of the 26 th.
The company said the restructuring plan would reduce its debt to about $0. 45 billion and received approval from almost all lenders and bondholders.
Since the end of 2008, the company has been negotiating with lenders and creditors after it missed the financial targets needed for loans related to the 2003 acquisition.
Several other companies in the mattress industry have also filed for bankruptcy this year, including Dial-A-
Mattress Operating Company, 1-800-
Integrated bedding company for the production of spring air mattresses;
And Foamex International Inc. , a manufacturer of polyurethane foam . .
Ares and Teachers\' Private Capital are expected to operate Simmons and Seta, respectively.
The market share of the two brands will exceed the current leader, Sealy Corp ZZ.
According to research firm IBISWorld Inc.
Affiliate of Kohlberg Kravis Roberts & Co, a private equity firm [KKR. UL]held 50.
As of August, 9% per cent of Sealy. 30.
According to court records, senior bank lenders and suppliers of simmons will be paid in full;
Simmons Bedding Company bill holders can get up to 85.
7 cents a dollar;
The holder of the holding company can get up to 5 tickets.
The dollar is 6 cents, and most stock holders don\'t get anything.
Miller Buckfield and Weil, Gotshal & Manges LLP law firm consulted Simmons.
Goldman Sachs (GS. N)
And the notification buyer of the law firm Sullivan & Cromwell Co. , Ltd.
The case occurred at re Simmons Bedding Company in the United States. S.
Delaware District 1 bankruptcy court09-14036. (
Reports from Ajay Kamalakaran in Bangalore and Jonathan Stempel in New York;
Edited by Greg Mahlich and Lisa Von Ahn)