We are very pleased to be acquiring a company with such a strong and experienced management team
Jim Leech, Ontario Teachers' Senior Vice-President

Teachers' Private Capital, the private equity arm of the Ontario Teachers' Pension Plan ("Ontario Teachers'"), announced today they have signed a definitive agreement to buy National Bedding Co. ("NBC"), maker of Serta mattresses, one of the oldest and best known names in the bedding industry.

"We are thrilled to partner with Ontario Teachers' in this transaction. We are also pleased that the existing equity owners of NBC will be re-investing a portion of their proceeds along with us, and that the senior management team will remain in place. For the past two years, Ares has owned a minority stake in National Bedding Co. and been impressed with the outstanding performance of the Company's management team. We look forward to the opportunity to increase our ownership stake as well as to continue to support the Company's growth in the $5 billion bedding industry," said Bennett Rosenthal, a partner in Ares Management.

Jim Leech, Ontario Teachers' Senior Vice-President, added: "We are very pleased to be acquiring a company with such a strong and experienced management team and an extraordinary consumer brand. NBC is an excellent fit for our growing private equity portfolio."

Robert Sherman, NBC's CEO, said, "We are looking forward to our partnership with Ares and Ontario Teachers'. Their strong, committed financial sponsorship will allow Serta to continue its track record of growth and partnership with our customers and suppliers."

Burt Kaplan and Richard Yulman, the Company's founders, will remain investors in the Company as well as members of the Company's Board of Directors.

Founded in 1931, Serta is currently the third largest U.S. manufacturer of mattresses and foundations in the U.S. and Canada. NBC is currently the largest manufacturer of Serta brand mattresses and holds 27 of the 34 exclusive U.S. Serta manufacturing licenses. NBC accounts for about 80% of all sales under the Serta brand name in the U.S. and Canada.

Terms of the transaction were not disclosed.