Sealy Corporation
Encyclopedia
Sealy Corporation is an American owned major manufacturer of mattress
es, based in Trinity, North Carolina
, in the United States
. The company draws its name from the city where it started, Sealy, Texas
.
ed an invention that compressed cotton for use in his mattresses. Eventually the mattresses became so popular he was able to sell the patents to manufacturers in other markets. The term "Mattress from Sealy" was coined to describe what was produced.
During 1906, after much success as an advertising executive, Earl Edwards purchased the patents and gained manufacturing knowledge from Haynes. Edwards took the name "Sealy" for his new company and expanded it to a national market.
Due to lack of funding for manufacturing, Sealy expanded using a licensing
-expansion similar to Coca-Cola
. By 1920, Sealy had 28 licensed plants and became the first mattress company to expand using a licensing program.
During the Great Depression
the mattress industry was hit hard. Sealy lost most of its licensees and narrowly escaped bankruptcy
itself. During this time Sealy consolidated with the surviving licensees and created what is now known as Sealy, Incorporated.
Sealy became privately held in an April 1989 leveraged buyout
. First Boston
made a bridge loan to the buy-out firm just as Drexel Burnham Lambert
was running into trouble and the junk bond market was drying up, and was stuck with the loan. This led to a dramatic slow-down in leveraged buy-outs.
Bain Capital
and a team of Sealy's senior executives acquired the company in 1997. In 2004, the company was acquired by Kohlberg Kravis Roberts & Co. and a team of Sealy management. The deal was valued at $1.5 billion. The company operated as a privately held corporation until 2005. On June 30 of that year, it announced an initial public offering of common stock. The company said proceeds from the IPO would go to paying down debt, funding global operations and paying private equity firm Kohlberg Kravis Roberts to “terminate our future obligations under our management services agreement.”
Sealy's corporate headquarters are located in Trinity, NC. According the Sealy's website, they are the largest manufacturer of mattresses in the world. Sealy sells the majority of its mattresses under its three main brands, Sealy Posturepedic, Stearns & Foster and Bassett.
, Bahamas, Israel
, Jamaica
, Japan
, New Zealand
, South Africa
, Thailand
and the United Kingdom
.
In 1995, direct export business began to South Korea
.
In 1996, Sealy began manufacturing and selling in Mexico
.
In 2011, Sealy opened its first manufacturing plant in China. The 100,000-square-foot factory outside Shanghai is a joint venture of Sealy China, which is owned and operated by Sealy Inc., and licensee Sealy Australia.
Mattress
A mattress is a manufactured product to sleep or lie on, consisting of resilient materials and covered with an outer fabric or ticking. In the developed world it is typically part of a bed set and is placed upon a foundation....
es, based in Trinity, North Carolina
Trinity, North Carolina
Trinity is a city in Randolph County, North Carolina, United States. The population was 6,690 at the 2000 census.-History:The community was named after Trinity College, which later became Duke University. The "World's Longest Hot Wheels Track" was built at the Kyle Petty Farm in Trinity, North...
, in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The company draws its name from the city where it started, Sealy, Texas
Sealy, Texas
Sealy is a city in Austin County, Texas within the Houston–Sugar Land–Baytown metropolitan area. The population was 5,248 at the 2000 census. Sealy is located 50 miles west of the downtown Houston area.-Geography:...
.
History
In 1881, cotton gin builder Daniel Haynes began making cotton-filled mattresses for his friends and neighbors. In 1889, he patentPatent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
ed an invention that compressed cotton for use in his mattresses. Eventually the mattresses became so popular he was able to sell the patents to manufacturers in other markets. The term "Mattress from Sealy" was coined to describe what was produced.
During 1906, after much success as an advertising executive, Earl Edwards purchased the patents and gained manufacturing knowledge from Haynes. Edwards took the name "Sealy" for his new company and expanded it to a national market.
Due to lack of funding for manufacturing, Sealy expanded using a licensing
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
-expansion similar to Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
. By 1920, Sealy had 28 licensed plants and became the first mattress company to expand using a licensing program.
During the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
the mattress industry was hit hard. Sealy lost most of its licensees and narrowly escaped bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
itself. During this time Sealy consolidated with the surviving licensees and created what is now known as Sealy, Incorporated.
Sealy became privately held in an April 1989 leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
. First Boston
First Boston
First Boston Corporation was a New York-based, bulge bracket, investment bank, founded in 1932 and acquired by Credit Suisse in 1990. Together with its sister investment banks, it was referred to as CS First Boston after 1993 and part of Credit Suisse First Boston after 1996, the First Boston part...
made a bridge loan to the buy-out firm just as Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
was running into trouble and the junk bond market was drying up, and was stuck with the loan. This led to a dramatic slow-down in leveraged buy-outs.
Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...
and a team of Sealy's senior executives acquired the company in 1997. In 2004, the company was acquired by Kohlberg Kravis Roberts & Co. and a team of Sealy management. The deal was valued at $1.5 billion. The company operated as a privately held corporation until 2005. On June 30 of that year, it announced an initial public offering of common stock. The company said proceeds from the IPO would go to paying down debt, funding global operations and paying private equity firm Kohlberg Kravis Roberts to “terminate our future obligations under our management services agreement.”
Sealy's corporate headquarters are located in Trinity, NC. According the Sealy's website, they are the largest manufacturer of mattresses in the world. Sealy sells the majority of its mattresses under its three main brands, Sealy Posturepedic, Stearns & Foster and Bassett.
Overseas markets
There are licensees operating in AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Bahamas, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
, Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
In 1995, direct export business began to South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
.
In 1996, Sealy began manufacturing and selling in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
.
In 2011, Sealy opened its first manufacturing plant in China. The 100,000-square-foot factory outside Shanghai is a joint venture of Sealy China, which is owned and operated by Sealy Inc., and licensee Sealy Australia.