ATLANTA–The U.S. Bankruptcy Court for the District of Delaware has paved the way for the mattress manufacturer’s acquisition by Serta’s owners Ares Management and Teachers’ Private Capital.
The court has approved Simmons prepackaged restructuring plan, allowing the acquisition to take place. A Simmons statement said the company will close the transaction and emerge from Chapter 11 on or around Jan. 20. Once the deal is completed, Simmons’ total debt obligations will be slashed from about $1 billion to about $450 million, and all of the manufacturer’s trade vendors and senior secured lenders will be paid in full.
Simmons announced the plan in September, saying that Ares and Teachers’ Private Capital had agreed to pay $760 million for the purchase. In October, the U.S. Federal Trade Commission said the deal, which would bring the nation’s number two and number three mattress manufacturers under the same ownership, did not violate antitrust standards. Simmons’ creditors voted to approve the acquisition in November.