Global private equity firm Advent International has acquired a majority stake in Chinese mattress maker King Koil Shanghai Sleep System Co., Ltd. from CITIC Capital Partners, it announced today.
Financial terms were not disclosed.
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.
"We look forward…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," said Filippo de Vecchi, managing director and co-head of Greater China at Advent International.
CITIC Capital acquired control of King Koil China for an undisclosed amount in 2014.
The US$10 billion Chinese mattress market is expected to grow at 8% annually, with the premium segment growing at 16%. King Koil China operates over 250 retail stores across 124 cities, while taking a 35% market share in the luxury hotel mattress market.
Established in 2000, King Koil China is the exclusive licensee of several international mattress brands including King Koil, Aireloom and Life Balance in China.
"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," says Stephen Wang, CEO and co-founder of King Koil China.
Founded in 1984, Advent International manages US$40 billion in assets as of June 30, 2016.