Select Comfort Acquires ComfortaireJanuary 25, 2013
The company reported the acquisition in its year-end earnings report.
"This investment progresses our role as the leader in delivering innovative products as part of an individualized sleep experience, while also strengthening our company's competitive advantages. Specifically, with Comfortaire, we anticipate benefits from the convergence of intellectual property," said Shelly Ibach, president and CEO of Select Comfort. "We also are pleased that the second-largest adjustable air-bed company - with its experienced team and shared commitment to quality, innovation and individualization - is now part of Select Comfort."
Select Comfort purchased the business and assets of Comfortaire from mattress manufacturer, Park Place Corp. Comfortaire is a privately held company with 2012 revenues of $10.5 million that manufactures and markets adjustable air-supported sleep systems. Founded in 1981, the company is headquartered in Greenville, S.C., and employs 24 professionals. Select Comfort will continue to operate the Comfortaire business through an independent subsidiary.
The company also committed $4.5 million for a minority equity investment in one of its strategic product-development partners. This investment complements the company's current R&D capabilities and is associated with products scheduled to launch during the next 12 to 24 months.
Both transactions are being funded through the company's internally generated cash reserves.