M&A Deal Summary

Freeman Spogli, RSTW Partners and Capital Point Partners Acquire Mattress Giant

On August 3, 2006, private equity firm Freeman Spogli, private equity firm RSTW Partners and Capital Point Partners acquired retailer Mattress Giant

Acquisition Highlights
  • This is Freeman Spogli’s 10th, RSTW Partners’ 1st and Capital Point Partners’ 1st transaction in the Retail sector.
  • This is Freeman Spogli’s 15th, RSTW Partners’ 9th and Capital Point Partners’ 3rd transaction in the United States.
  • This is Freeman Spogli’s 2nd, RSTW Partners’ 1st and Capital Point Partners’ 1st transaction in Texas.
Investment Fate
  • Mattress Giant was sold to a publicly-traded strategic buyer in 2012.

M&A Deal Summary

Date 2006-08-03
Target Mattress Giant
Sector Retail
Buyer(s) Freeman Spogli
RSTW Partners
Capital Point Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

Mattress Giant

Addison, Texas, United States
Mattress Giant Corp. is a specialty retailer of bedding products to markets across the eastern half of the U.S.

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Buyer(S) 3

Buyer

Freeman Spogli

Los Angeles, California, United States

Category Private Equity Firm
Founded 1983
PE ASSETS 7.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Freeman Spogli & Co. is a private equity firm focused on acquiring middle-market retail, direct marketing, and distribution companies. The Firm will consider opportunities throughout North America and prefers partnering with management when pursuing acquisitions. Freeman Spogli looks to invest $75 to $300 million in transactions valued up to $750 million. Freeman Spogli was formed in 1983 and is based in Los Angeles, California with an additional office in New York City.


DEAL STATS #
Overall 15 of 49
Sector: Retail M&A 10 of 17
Type: Buyout (LBO, MBO, MBI) M&A Deals 9 of 14
State: Texas M&A 2 of 6
Country: United States M&A 15 of 49
Year: 2006 M&A 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-14 Petco Health and Wellness Company

San Diego, California, United States

Petco Health and Wellness Company is a health and wellness company focused on improving the lives of pets, pet parents, and their own Petco partners. The company is focused on delivering comprehensive wellness solutions through its products and services, and creating communities that deepen the pet-pet parent bond. It operates more than 1,500 Petco locations across the U.S., Mexico, and Puerto Rico, including a growing network of more than 100 in-store veterinary hospitals, and offer a complete online resource for pet health and wellness. Petco Health and Wellness Company was founded in 1965 and is based in San Diego, California.

Buy $1.8B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-08 Asurion

Nashville, Tennessee, United States

Asurion provides insurance tech support for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry. Asurion was founded in 1994 and is based in Nashville, Tennessee.

Buy -
Buyer

RSTW Partners


Category Private Equity Firm
Founded 1989
PE ASSETS 750M USD
Size Large
Type Sector Agnostic
DESCRIPTION

RSTW Partners is a private investment firm focused primarily on providing subordinated debt financing to middle-market companies throughout the continental US. RSTW will consider opportunities in a variety of industries and looks to invest $10 to $30 million per transaction. Prospective companies typically have revenues of $25 million andn operating income of $2.5 million. RSTW will not invest in start-ups, turnarounds, financial services, real estate, or oil/gas exploration. RSTW was formed in 1989 and is based in Houston, Texas.


DEAL STATS #
Overall 9 of 9
Sector: Retail M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 5 of 5
State: Texas M&A 1 of 1
Country: United States M&A 9 of 9
Year: 2006 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-02 Protocol Global Solutions

Sarasota, Florida, United States

Protocol Global Solutions, Inc. is a leading provider of electronic customer relationship management (CRM)services, providing a full suite of CRM services. Protocol enables its clients to identify, acquire and retain their customers, thereby increasing their revenue, customer base and market share. Protocol designs and implements comprehensive solutions that utilize the Internet and other communication channels to provide high value-added services that address all the eCRM needs of its clients.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-26 Restaurants Unlimited

Seattle, Washington, United States

Restaurants Unlimited operates 46 restaurants in twelve states including 15 Kincaid’s – an American Fish, Chop, and Steakhouse; 8 Newport’s – a Seafood Grill, 9 Palomino’s - an upbeat city restaurant and bar famous for its European-inspired American cuisine; 9 Stanford’s – an upscale casual restaurant featuring grilled steaks, chicken and seafood; 3 Pizzeria Fondi’s; and nine other specialty brands such as Portland City Grill, Henry’s Tavern, Palisade, Cutters Bayhouse, Scott’s, and Ryan’s Grill.

Sell -
Buyer

Capital Point Partners

Houston, Texas, United States

Category Private Equity Firm
Founded 1989
Size Small
Type Sector Agnostic
DESCRIPTION

Capital Point Partners (CPP) is an independently owned investment management firm providing mezzanine capital to middle-market companies throughout the US. CPP supports a wide variety of transaction types, including buyouts, recapitalizations and refinancings, mergers and acquisitions and growth or expansion situations. CPP invests junior capital nationwide in companies owned by established equity sponsor groups, companies with fundless sponsor involvement, and also directly with strong management team shareholders in non-sponsored companies. The Firm's target investment size is $5 to $20 million. CPP will not invest in real estate or oil/gas exploration. Capital Point Partners is based in Houston, Texas.


DEAL STATS #
Overall 3 of 12
Sector: Retail M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 3 of 7
State: Texas M&A 1 of 4
Country: United States M&A 3 of 12
Year: 2006 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-27 Gordon Biersch Brewery

San Jose, California, United States

Gordon Biersch Brewery Restaurant is a restaurant and brewery chain that combines German‐style brewing and made‐from-scratch cuisine. The Company brews its beer according to the German purity law and serves food and craft beer in its locations. Gordon Biersch was founded in 1988 and is based in San Jose, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 OneTouchPoint

Hartland, Wisconsin, United States

OneTouchPoint provides print and document services that include digital document management, data exchange between OTP and its customers, just-in-time production and delivery, variable data printing, document hosting, and customized print solutions. OneTouchPoint was founded in 2007 and is based in Hartland, Wisconsin.

Buy -