Corona-Based Mattress Manufacturer Anatomic Global Completes Agreement Providing Capital For Growth
Proceeds Will Be Used To Reduce Debt, Launch New Branding And Merchanising Programs And To Invest In New Equipment
CORONA, CA – Anatomic Global, a leading U.S. manufacturer of memory foam mattresses, announced today that it has entered into an agreement providing funding of up to $20 million to help the fast-growing company reduce debt, fund working capital, launch new branding and merchandising programs and to invest in new equipment.
In each of the past two years, Anatomic Global’s sales have increased more than 50-percent a year. While a positive sign in the sleep products industry, where most companies reported sales declines or single digit growth during the same period, the company’s hyper growth has presented challenges that the new investment will correct.
“It is a good problem to have, but a challenging one nonetheless; rising sales and having the funding requirements to support the growth,” said Anatomic Global Chairman and CEO David Farley. “This agreement will allow us to relieve all of our short term cash burdens and to pick up the pace of investment in our brand and infrastructure. Having the ability to bring in additional funding beyond the initial tranche over the next five years based on our performance makes this deal a real home run.”
Under terms of the transaction, a new corporation, Anatomic Holdings, Inc. has been formed. FXI Holdings, Inc. is a part of the new enterprise and Farley remains chairman and CEO. In terms of debt reduction, the company will reduce a multi-million dollar credit obligation to a key supplier, dating back to the launch of its consumer business two years ago.
In terms of corporate branding, the company is planning a significant product introduction at this summer’s Las Vegas Furniture Market and a more comprehensive rebranding for early 2012. Anatomic is also planning to add equipment to its manufacturing site to increase operational performance.
“The memory foam sector continues to just explode and we are thrilled by the retailer consumer response to our products,” Farley added. “We are excited by the new structure of our business as it will assure our ability to keep pace with this brisk growth and with our business plan that has us breaking through the $100 million sales range during the next five years.”
Founded in 1989, Anatomic Global is a fully-integrated, EDI capable, globally positioned distribution, logistics and fulfillment-company that today incorporates the brand development and marketing insight of bedding industry leaders to meet the needs of its customers. Deeply rooted in the medical mattress industry, in 2008 the company applied its medical manufacturing expertise and launched the Comfort by Design Mattress brand featuring its signature, exclusive EcoMemoryFoamTM extreme open-cell plant-based memory foam. For more information, visit www.antatomicglobal.com.