Talalay Global

Client Profile

Headquartered in Shelton, Connecticut, Talalay Global is the largest producer of Talalay latex in the world and the only manufacturer in North America. The Company is known for producing some of the finest latex sleep products across the globe and produces finished and semi-finished goods including mattresses, mattress components, mattress toppers, pillows, and more to provide a comprehensive sleep products portfolio.

Situation

After emerging from bankruptcy in 2015 under a plan of reorganization, the Company focused on increasing the sales of its core sleep products portfolio and lowering its overall cost structure. The Company initiated several strategic initiatives beginning in 2017, including hiring a new CEO, appointing three independent directors to its Board, refocusing on the emerging pillows segment and executing a thorough review of its operating process to drive a more efficient operating structure. However, the introduction of “bed-in-a-box” sleep products and the disintermediation of traditional retailers, combined with rising material costs, negatively impacted the sales and profitability of the Company resulting in a second Chapter 11 filing in August 2019.

Solution

SSG was retained by Talalay Global in November 2019 to conduct a comprehensive marketing process and solicit offers for the Company. The process attracted significant interest from several domestic and international strategic and financial parties. COVID-19 hit during the middle of the sale process, causing the Company to shut down until June 2020. Despite the shutdown, the sale process was accelerated and SSG was able to source and secure a stalking horse offer from a financial buyer. Several qualified overbids were received, resulting in a robust auction in June 2020 with multiple rounds of bidding. Artilat’s highest and best auction bid ultimately provided the best outcome and maximized value for all stakeholders. SSG’s industry knowledge and expertise running special situations sale processes enabled the transaction to be consummated on a going-concern basis and preserved hundreds of jobs.