New Capital Investment Will Fuel Dormeo Growth in U.S.
Dormeo NA said that it has closed its equity stake deal with Sinomax USA, a wholly-owned subsidiary of Sinomax Group in Hong Kong, a global leader in the manufacture of visco-elastic health and wellness products, which has resulted in a large capital investment in the business that will hasten its growth in the U.S. market.
Dormeo said that one of the first results of the deal will be an expansion of production at its Winchester, VA facility, where the company plans to triple output over the next 60 days.
“Sinomax’s strong financial commitment to Dormeo, in conjunction with their vast global supply chain, infrastructure and resources will provide us with significant advantages in further market penetration, brand awareness and supply chain efficiencies,” said Dormeo NA Chief Executive Officer Jon Stowe. “This transaction marks a very important step in significantly accelerating the commercial opportunity for Dormeo, which will help to ensure that consumers in the North American market will be able to purchase our superior sleep solutions at an ever increasing number of retail locations across the continent."
“We have been strong admirers of the Dormeo brand since it introduced its highly differentiated Octaspring technology to the U.S. market in 2012,” said Sinomax USA President and Chief Executive Officer Frank Chen. “We have been very impressed with the traction of the Dormeo brand and the Octaspring technology in the U.S. and Canadian markets and foresee a very significant growth path for Dormeo going forward. We are also quite impressed with the quality and expertise of the Dormeo management team and look forward to supporting their strong execution efforts in the high-growth specialty sleep products market.”
As part of the transaction, Chen and Sinomax Group Chief Financial Officer Kelvin Lam will join the Dormeo NA board.
About Sinomax USA: Located in Houston, Texas, Sinomax USA delivers innovative memory foam lifestyle and comfort through distribution in California, Texas and South Carolina, as well as full vertical integration in China. Sinomax serves its partners by providing innovative design, growth, competitiveness, and expert merchandising.
About Dormeo NA: For more than 10 years, Dormeo has been a leading mattress brand in Europe and Asia. Making its North American debut as Dormeo Octaspring in 2012, the company introduced its patented Octaspring to the U.S. market. A breakthrough in mattress technology, the Octaspring’s individual memory foam springs work together to form the core of the revolutionary Octaspring mattress. With its U.S. showroom and distribution center in Plano, TX, Dormeo Octaspring is part of Studio Moderna Group, a leading European multi-channel direct marketing company.