Latex Foam International d/b/a Talalay Global recently sold substantially all of its assets to Artilat NV. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Connecticut. The transaction closed in July 2020. SSG Capital Advisors, LLC (“SSG”) acted as the investment banker to Talalay Global in this transaction.
Headquartered in Shelton, Connecticut, Talalay Global is the largest producer of Talalay latex in the world and the only manufacturer in North America. The company is known for producing latex sleep products across the globe and manufactures finished and semi-finished goods including mattresses, mattress components, mattress toppers, pillows, and more to provide a comprehensive sleep products portfolio.
After emerging from bankruptcy in 2015 under a plan of reorganization, Talalay Global focused on increasing the sales of its core sleep products portfolio and lowering its overall cost structure. The company initiated several strategic initiatives beginning in 2017, including hiring a new CEO, appointing three independent directors to its board, refocusing on the emerging pillows segment and executing a thorough review of its operating process to drive a more efficient operating structure. However, the introduction of “bed-in-a-box” sleep products and the disintermediation of traditional retailers, combined with rising material costs, negatively impacted the sales and profitability of the company resulting in a second Chapter 11 filing in August 2019.
SSG was retained by Talalay Global in November 2019 to conduct a comprehensive marketing process and solicit offers for the company. The process attracted significant interest from several domestic and international strategic and financial parties. COVID-19 hit during the middle of the sale process, causing the Company to shut down until June 2020. Despite the shutdown, the sale process was accelerated and SSG was able to source and secure a stalking horse offer from a financial buyer. Several qualified overbids were received, resulting in a robust auction in June 2020 with multiple rounds of bidding. Artilat’s highest auction bid ultimately provided the best outcome and maximized value for all stakeholders. SSG’s industry knowledge and expertise running special situations sale processes enabled the transaction to be consummated on a going-concern basis and preserved hundreds of jobs.
For more than 60 years, Artilat has held a leading position as a European manufacturer of a latex foam products for the global home bedding market. Artilat has sales offices across the globe including Belgium, Czech Republic, Canada, Spain, Portugal, Italy, Greece, China, Korea, Japan, Australia and the United States.