Owen & Co acquires Zedbed
TORONTO – Owen & Company, the Canadian producer of the Kingsdown mattress brand has acquired Zedbed, a relatively small Quebec-based manufacturer of eco-friendly memory foam mattresses, motion bases and other sleep products as part of its aggressive growth plan to increase its market penetration and broaden its luxury sleep product offerings across North America.
Owen & Company, more commonly known as Kingsdown Canada, entered into a strategic partnership with Novacap, a Montreal-based private equity firm in April 2017.
In a statement, Owen & Company noted that with three manufacturing facilities located in Shawinigan, Québec area, Zedbed is a highly innovative company, one of the few mattress manufacturers to be vertically integrated in making its own unique soy-based memory foam. These proprietary foams allow Zedbed to offer Made-In-Canada foam products to its customers that no one else can replicate.
“Foam mattresses represent about 30% of the mattress market in Canada, and Kingsdown Canada has not been an active player in this category,” explains Marc Paiement, senior partner of Novacap and chairman of Owen & Company. “Both companies complement each other well in their respective markets and both will have a lot to gain from one another. Zedbed will have the ability to showcase its unique products outside of the Québec market through the Kingsdown Canada network. Conversely, Kingsdown Canada will benefit from the Zedbed network in Québec, and offer a larger spectrum of complementary products, which includes innerspring mattresses.”
“We are extremely excited to be working with the Zedbed team,” Mike James, president and chief executive officer of Owen & Company added. “We were attracted by Zedbed’s versatility and expertise, which enable it to develop and manufacture high-end products that continuously redefine sleep industry standards. They have expertise in product segments we presently do not serve and a tradition of craftsmanship and innovation that makes this relationship very promising.”
“For us, this transaction represents a great opportunity to take our company to the next level and further develop the North American market,” Zedbed president Mario Gélinas said. “We already know that we have great products, and our new partnership with Kingsdown Canada and Novacap will allow us to grow even faster than before.”
The terms of the acquisition were not disclosed, although Owen & Company said its long-term goal is to become a prominent leader in the North American mattress market. “The acquisition of Zedbed is an integral piece to the puzzle, with its world class research and development capabilities as well as its vertically integrated manufacturing facilities in Québec,” the statement said.
Mario Gélinas and the other remaining members of Zedbed’s executive team will join Owen & Company.
In addition to Kingsdown, Owen & Company also produces mattresses under the Bassett and James & Owen labels.
Founded in 1981, Novacap is a leading Canadian private equity firm with $2.3 billion of assets under management. In addition to Zedbed and Owen & Company, Novacap also has an equity position in Bestar, the Lac-Megantic, Quebec-based manufacturer of ready-to-assemble furniture.
Related Story: Kingsdown Canada joins equity partnership with NOVACAP