Houlihan Lokey Advises Cerberus Capital Management (1)

Houlihan Lokey is pleased to have advised Cerberus Capital Management, LP (together with its affiliates, “Cerberus” or the “Sponsor”) on its successful debt placement supporting a series of related transactions through which it acquired each of Brooklyn Bedding, LLC, and Helix Sleep, Inc. (Helix) and combined them to form a leading direct-to-consumer (DTC) mattress platform. The transaction closed on October 12, 2021.

Brooklyn Bedding crafts expertly made bedding with its cutting-edge equipment and patented materials and distributes its products through an omnichannel platform. Helix designs and provides custom-made mattresses through a tailored digital experience and analytics-focused marketing strategy. Together, the combined company will offer customers Brooklyn Bedding’s and Helix’s broad portfolio of high-quality offerings and superior end-to-end experiences through one of the leading vertically integrated, DTC mattress platforms in the United Sates, which is supported by best-in-class manufacturing and digital capabilities.

The businesses will operate under a holding company structure in partnership with Brooklyn Bedding’s and Helix’s respective founders, as well as other existing shareholders, who will retain a significant minority ownership interest in the combined business on a go-forward basis. Brooklyn Bedding and Helix will continue to operate under their respective brand names and the combined company will be led by John Merwin, current Chief Executive Officer of Brooklyn Bedding. Helix’s co-founders, Adam Tishman, Kristian von Rickenbach, and Jerry Lin, will lead the DTC segment of the combined business.

Cerberus is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. The Sponsor invests across the capital structure where its integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Its tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for their investors.

Houlihan Lokey’s Capital Markets Group served as the exclusive placement agent to Cerberus, assisting the Sponsor in arranging, structuring, and negotiating the financing within the confines of concurrent accelerated M&A process timelines. The secured credit facility consisted of a revolver as well as a first lien term loan. The transaction represents another example of Houlihan Lokey’s ability to drive favorable outcomes to support the growth of its clients. Houlihan Lokey’s Capital Markets Group is one of the largest providers of private capital solutions in the world, raising over $11 billion across more than 60 transactions during FY 2021.