LOS ANGELES–Ares Management and Ontario Teachers Pension Plan, co-owners of Serta, have finished their acquisition of Simmons.
The deal, which took place through Simmons’ prepackaged restructuring plan under Chapter 11, was approved by U.S. Bankruptcy Court in Wilmington, Del., two weeks ago. With the closing of the deal, Simmons’ debt obligations have been trimmed from about $1 billion to about $450 million. In a joint statement from Simmons’ new owners, Bennett Rosenthal, senior partner at Ares, said the new debt structure will position Simmons “to further unlock value from the growing franchise.”
As announced in previous statements, Simmons and Serta will operate as separate entities under this ownership, with their own management teams.