Advent International acquires majority stake in King Koil Shanghai Sleep System Co., Ltd. from CITIC Capital Partners

Shanghai / Hong Kong, 1 November 2016 – Advent International, one of the largest and most experienced global private equity investors, today announced that it has acquired a majority ownership interest in King Koil Shanghai Sleep System Co., Ltd (King Koil China), a leading, Shanghai-based, premium manufacturer and retailer of mattresses in China, from CITIC Capital Partners. King Koil China’s management team will retain a minority stake in the company and continue to lead the business following the completion of the transaction. Financial terms were not disclosed.

Established in 2000, King Koil China is the exclusive licensee of several international mattress brands such as “King Koil”, “Aireloom” and “Life Balance” in China.  The $10bn Chinese mattress market is expected to grow at 8%, with the premium segment growing at 16%, and King Koil China is well-positioned to take advantage of this growth due to its strong brand recognition in China’s premium mattress market. The company is the premier player in supplying premium sleep products to luxury hotels in China, with 35% market share.  With over 250 retail stores across 124 cities, King Koil China is also rapidly expanding its retail business through both offline and online formats.

“King Koil China is a leader in its industry and has established a strong brand equity presence through both business-to-business and business-to-consumer channels”, said Filippo de Vecchi, Managing Director and Co-head of Greater China. “We look forward to working with the company’s highly-skilled management team and deploying our extensive experience in the retail and consumer sectors to help grow the business during this next stage of development, including deepening King Koil China’s presence in its existing cities, expanding to other cities within China as well as increasing its online presence.”

Stephen Wang, CEO and Co-founder of King Koil China said, “We are delighted to welcome such an experienced and growth-oriented private equity firm as our new investment partner. The mattress market in China is large and fragmented, but growing. With Advent’s support, we will continue to focus on our core competencies that drive growth and operational efficiency, allowing us to consolidate the market and further increase both our footprint and market share in the premium mattress segment.”

In line with the firm’s investment strategy for Greater China, Advent invests in leading companies in Greater China, Singapore and selectively in other Asian countries, with a particular focus on the chemicals, healthcare, education and retail sectors. Advent has been investing in the retail, consumer and leisure sector for 26 years and has completed over 65 investments in 20 countries worldwide. Recent investments in the consumer space include Crompton Greaves Consumer Electricals Limited, a manufacturer of consumer products in India, Noosa Yoghurt, a fast-growing leader in the yoghurt category, The Learning Lab, Singapore’s leading provider of K-12 academic enrichment and tutorial services and Serta Simmons Bedding, the owner and manager of two of the largest brands in the mattress industry, National Bedding and Simmons Bedding Company.

About King Koil Shanghai Sleep System Co., Ltd.

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 315 private equity transactions in 40 countries. As of June 30, 2016, it had $40 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 190 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies

For more information, visit:
www.kingkoil.com.cn

About Advent International

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 315 private equity transactions in 40 countries. As of June 30, 2016, it had $40 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 190 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.

For more information, visit:
www.adventinternational.com

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