DALLAS — February 2, 2022 — Generational Equity, a mergers and acquisitions advisor for privately held businesses, is pleased to announce the majority sale of its client, Illinois Sleep Products Inc. to Bedding Industries of America. The transaction closed January 20, 2022.
Illinois Sleep Products (ISP), located in Chicago, Illinois was founded in 1986 by husband-and-wife team Edward Ciolkosz and Susan Ciolkosz. ISP has been a licensee of BIA for almost seven years and manufactures in its 240,000-square-foot factory. Under the terms of the acquisition, ISP’s management team and its more than 100 employees and contractors will remain with the company. The Chicago factory will be rebranded BIA Midwest.
The Ciolkosz’s began selling mattresses in 1978, and then started producing them in their basement and garage. The operation grew to 16 storefronts and became known as one of Chicago’s largest bedding retail stores. After starting ISP, the company purchased its Englander license in 2005 and now operates a specialty sewing shop, multiple roll pack operations and pocketed coil manufacturing in its factory.
Located in North Brunswick, N.J., Bedding Industries of America (BIA) is an international bedding manufacturer. It has three major divisions which operate as companies: Therapedic Sleep Products, Eclipse Sleep Products, and Eastman House Bedding. BIA itself also makes its own mattresses under the name BIA Mattresses. BIAM is the manufacturer of mattresses for a lifestyle suite, The Ernest Hemingway Collection.
The transaction takes BIA’s owned factory holdings to a total of 465,000 square feet. The company opened a 90,000-square-foot manufacturing facility in Rialto, Calif., last year and operates in 135,000 square feet on its campus in New Jersey. The Chicago factory produces in 240,000 square feet. In addition to its factories, BIA has a network of more than 80 licensees worldwide.
BIA will be expanding ISP’s certified organic brand, Harvest Green Mattress as well as continuing to produce the Englander brand for the Midwest. The Chicago plant will be expanding its production of BIA’s existing collections, including Eclipse, Eastman House, Hemingway, Natural Dreams and Velika.
“We have targeted the Midwest as an important area of growth for our brands,” said Stuart Carlitz, president and CEO of BIA. “Ed is an outstanding manager who I’ve known for decades, and I’m very excited to welcome him and his family into our company. We look forward to offering their customers all the support and capabilities that we have to offer. I thank Ed and Sue for building an amazing business and look forward to beginning this new and exciting chapter for all of our combined employees, customers and suppliers.”
“I have had the pleasure of developing a relationship with Stuart and his team over the length of my career, and the decision for us to join together was an important one for our customers and employees. They are the right people to continue the legacy my family has built,” Ciolkosz said.
He added, “From the start of the acquisition, our two families, each deeply rooted in the mattress industry, have come together to make the transition swift and smooth. I look forward to working alongside their team.”
Generational Equity Executive Managing Director of M&A – Central Region, Michael Goss, and his team led by Senior Vice President, Andre Farahmandi, with support from Vice President, M&A, Jacob Mangalath, successfully closed the transaction. Senior Managing Director, Roger Dean established the initial relationship with ISP.
“I believe there’s a bright future in-store for both families as their positive business relationships and wealth of knowledge can be brought together to further grow the Company,” said Farahmandi.
Posted: February 2, 2022
Source: Generational Equity
