Sale of Ohio Mattress set
However, Wuliger will remain chairman and CEO CLEVELAND -- The future of this Ohio Mattress Co., the world's largest bedding company, that is slated to be sold for about $980 million, will break within the hands of the family that established it.
Ernest M. Wuliger, chairman and chief executive officer, will stay at the helm of the business, which agreed to be obtained by Gibbons, Green, van Amerongen, a management buyout company located in New York. Ohio Mattress Co. was set up by Morris Wuliger, grandfather of their chairman. After having become a grocer Wuliger went.
"This really is a superb day for many of our stockholders," Wuliger explained. "I was quite happy that following the agreement was finalized, I had been requested to continue as chairman and chief executive officer and also to become a substantial investor in the business. I've consented to both provides."
The Gibbons, Green offer makes Wuliger's estimated 18.8 percent stake in Ohio Mattress worth greater than $100 million.
Under the arrangement, Gibbons, Green will make a tender offer of $25.50 per share for as many as 36.9 million shares of Ohio Mattress, or 96% of outstanding stocks. The rest will be traded for warrants which will entitle stockholders to buy 10 percent of the company's stock.
Earnings for fiscal year ended Nov. 30, 1988, were $33.2 million on earnings of $661.5 million.
The disclosure brings along with it modifications at Ohio Mattress. Ronald E. Trzcinski, president and chief operating officer, has resigned; nonetheless he agreed to operate through the financial year if needed, the business said. Get more information here: http://futonszone.com/furniture-hot-cold-futon-bed/
Ohio Mattress will expand its reach. "Our due diligence in upcoming this investment strengthened our view that Ohio Mattress Co. has assembled a franchise of global significance from the bedding business, stated E. Stephen Benson, spouse of GGvA. "It's done so by its powerful evolution of this Sealy and Stearns & Foster new names. We saw a chance to expand that franchise to the European marketplace."
F.L. Betere S.A. (The Flex Group), that claims to be Europe's largest bedding maker, will take a minority stake in the new firm, Ohio Mattress explained. Betere is located in Madrid, Spain.
The news marks the culmination of a process started in November, when Ohio Mattress supervisors set the business up for sale, two years later winning a battle to become the bedding manufacturer. At the moment, analysts estimated Ohio Mattress could bring supplies manufacturer names that were as large as $20 a share.
On March 1, 1988, Ohio Mattress obtained three which enhanced, six purchase offers. Lazard Freres & Co. helped Ohio Mattress as fiscal adviser.
The price is contingent on funding requirements, and upon at least 51% of the stock being tendered. The buyout team said it's financing obligations from First Boston Corp. and First National Bank of Chicago. Borrowing finances mostly A leveraged buyout. The debt is paid with capital from the business that was acquired or by the sale of its assets.