Valesco Invests in American Bedding Manufacturers – The Second Investment out of Valesco Fund III
Apr 04, 2024
Dallas, April 4, 2024 – (Business Wire) – On March 26, 2024, Valesco closed its second platform investment out of Valesco Fund III. Headquartered in Athens, TN, American Bedding Manufacturers (“American Bedding”) is a niche manufacturer and distributor of mattresses, bed frames, and case goods to institutional end markets. American Bedding’s customers include several niche non-correlated end markets, including government & military, missions & rehab, camps, education, and agriculture.
Founded in 1997 by Boyd and Dale Reynolds, American Bedding has been a cornerstone of its Tennessee community, and Valesco looks forward to continuing the culture and traditions established over the years. “We are excited to partner with Valesco Industries and believe American Bedding is poised to continue its strong history of growth with continued investment in key operational areas,” said President and co-founder Boyd Reynolds. Dale Reynolds, co-founder, added, “Valesco’s attention to the history and culture of American Bedding gives us confidence that they will be a strong partner for the business in its next chapter.”
Valesco completed a majority buyout from the founders, partnering with the existing management team to capitalize on the Company’s long-standing market position, favorable industry tailwinds, and highly achievable growth opportunities. Subordinated debt was also provided by Valesco, and a senior term loan and revolver was provided by a senior lender who is also an investor in Valesco Fund III. Four Bridges Capital Advisors acted as exclusive financial advisor to American bedding.
Valesco continues to seek investment opportunities to provide equity and subordinated debt for control buyout, recapitalization, minority, management buyout, and mezzanine situations for Valesco Fund III. American Bedding embodies the objective that we seek to achieve throughout our investment process: to identify and execute the optimal solution for the business, existing owners, and Valesco. We are thrilled to partner with American Bedding and its management team to position the Company for continued success.
About Valesco
Valesco is a Dallas, Texas based private equity firm that focuses on making control and non-control investments in select growth-oriented small- and lower- middle-market businesses engaged in manufacturing, distribution, and business-to-business services. Valesco specializes in partnering with a company’s management team to support its growth objectives. As long-term industry veterans, the principals have capitalized and built numerous successful businesses, serving those companies in varying roles as investors, managers, advisors, and directors.