ATLANTA-The Federal Trade Commission has given its go-ahead to the deal in which Ares Management and Ontario Teacher’s Pension Plan, the owners of Serta, would acquire Simmons.
FTC has granted an early-termination order under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 to both Ares and Ontario Teachers. According to an FTC spokesman, this means that the commission has found that the deal, which would put the numbers two and three U.S. mattress manufacturers under the same ownership, does not violate antitrust standards.
The preliminary agreement for Ares and Ontario Teachers to acquire Simmons was announced in September, and a statement issued at that time said the purchase price would be $760 million. The statement also said Ares and Ontario Teachers would operate Simmons and Serta as separate entities.
A Simmons statement said the transaction still depends on a plan of reorganization to be filed with U.S. bankruptcy court under Chapter 11. Simmons said it is currently soliciting acceptance of the plan from creditors, and that votes from credits must be received by Epiq Bankruptcy Solutions, Simmons voting agent, before Nov. 12.