Huntsman Gay Makes Home Fashions Play
The middle market private equity firm, armed with more than $1B to make deals, makes its second move.
August 3, 2009
Huntsman Gay Global Capital, the middle market private equity firm that recently enlisted Super Bowl champion QB Steve Young to join its ranks, is putting its $1 billion-plus fund to work, buying Hollander Home Fashions, a Florida textile manufacturing company.
Terms of the deal were not disclosed. Hollander Home Fashions makes bed pillows, mattress pads, down comforters and other bedding products sold under its own brand and other brands; the company owns and runs seven factories in North America and in Asia.
Hollander Home Fashions generates approximately $200 million in annual revenue; other private equity players, including KKR, Thomas Lee Partners and American Capital have sought to make plays in the severely distressed bedding space as of late.
Earlier, Huntsman locked down its debut fund with $1.1 billion in capital. The firm was developed by Huntsman Corp. founder Jon Huntsman and Bain Capital veteran Robert Gay; Gregory Benson, Richard Lawson, Ronald Mika, Judy Frodigh, Rhett Neuenschwander and Steve Young, all either co-founders or MDs, also came to the PE shop with experience at either Bain or at Sorenson Capital.
The California Public Employees' Retirement System (CalPERS) and the fund’s general partnership were the two biggest backers.
In an earlier interview with M&A Journal, Young said: “Collectively, the partnership has worked on over 200 transactions. Our track record reflects that we’re focused on value creation. It’s not a fee-driven or multiple-arbitrage driven model. The only way to succeed in the middle market is value creation.”
Another recent add for Huntsman Gay was former Citigroup finance chief Gary Crittenden.
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