<article>Mattress manufacturing players Serta China and King Koil China, which is majority owned by private equity firm <a style="color: #000080;" href="https://www.dealstreetasia.com/tag/advent-international/">Advent International, </a>have come together to form a joint venture partnership targeting to become a leading industry player.</article>

Mattress manufacturing players Serta China and King Koil China, which is majority owned by private equity firm <a style="color: #000080;" href="https://www.dealstreetasia.com/tag/advent-international/">Advent International, </a>have come together to form a joint venture partnership targeting to become a leading industry player.
The joint venture deal is financed by Advent International, a majority stake owner in Serta Simmons Bedding, the largest distributor and manufacturer of mattresses in the US.
Serta China is the exclusive licensee of the Serta brand in China from Serta Simmons Bedding, according to a statement.
Advent acquired a controlling interest in Serta in 2012 followed by its acquisition of CITIC Capital&#8217;s interest in King Koil China in 2016.
As part of the transaction, Serta China and King Koil China will set up the joint venture, where the US-based mattress firm will take a minority interest and grant a new Serta licence. Financial terms of the transaction were not disclosed.
The newly created company will serve as a holding company for Serta China and King Koil China, which will operate independently and retain their brand names.
“We are excited to be able to offer our Serta brand as part of our investment in this new business in China. This joint venture has a unique advantage in terms of brand positioning, channel expansion and market distribution,” said Michael Traub, CEO of Serta Simmons Bedding.
China’s mattress market is expected to grow by 10 per cent over the next few years with the premium segment growing more than 20 per cent due to an expanding middle class and increasing demand for high quality sleep products, the parties said in a statement.
China has been Serta&#8217;s second largest market behind the US since its foray in 1998. The company is present in the country through more than 1,400 retail outlets in over 400 cities.
Meanwhile, King Koil China is the exclusive licensee of King Koil and several other international premium mattress brands in China. It operates through over 420 retail stores in 200 cities.
Under the new partnership, Serta China and King Koil will leverage their logistics and supply chain efficiencies while continuing to provide premium products.
“Since Advent’s investment in King Koil China, we have substantially expanded our number of outlets and franchisee partners, and opened a new manufacturing plant in Shanghai, allowing us to further increase our footprint and market share in the premium mattress segment. Serta China (…) has an impressive share of the B2C offline mattress market in China. The new combined platform will support an enriched choice of products for Chinese consumers and an expanded family of quality brands in the rapidly growing mattress market,” said Stephen Wang, CEO and co-founder of King Koil China.
Andrew Li, Managing Director and co-head of Greater China of Advent International, said enhancing the Serta China and King Koil China brands, channel, innovation and team would be a priority for the future business, and the firm will support the expansion of the new platform’s product line.
Advent has been investing in the consumer, retail, education and healthcare sectors across Greater China, Singapore and selectively in other Asian countries. Its Asia portfolio include Best Learning, an English language training institute for juniors in China; The Learning Lab, a provider of K-12 academic enrichment and tutorial services in Singapore; and International Coffee &amp; Tea, which operates The Coffee Bean and Tea Leaf.
Advent has invested in over 340 private equity transactions in 41 countries and as of March 31, 2018. It had $41 billion in assets under management.
Also read: <a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/hong-kongadvent-international-acquires-majority-share-in-king-koil-56907/">Advent buys CITIC Capital stake in mattress-maker King Koil China</a>

Mattress manufacturing players Serta China and King Koil China, have come together to form a joint venture partnership targeting to become a leading industry player.

Advent-backed mattress players King Koil China, Serta set up new JV

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Advent-backed mattress players King Koil China, Serta set up new JV

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