Sealy Corporation to Tempur-Pedic International Inc.

Home & Office Furnishings/Sep 2012/Citi, Perella Weinberg

Deal Information

Target

Sealy Corporation

Acquiror

Tempur-Pedic International Inc.

Sector

Home & Office Furnishings

Target Type

Public

Acquiror Type

Strategic

Advisors

Citi, Perella Weinberg

Enterprise Value

EV / LTM Sales

EV / LTM EBITDA

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

Firm Value / LTM EBITDA selected range: 7.5x - 9.5x

9 comps


Aug 2012	AOT Bedding Super Holdings Financial detail not publicly available at announcement; excluded from the observed range.	Advent International	-	-	-	-
Sep 2009	Simmons	Ares Management LLC / Ontario Teachers Pension Fund	-	-	7.5x	-
Oct 2006	Hilding Anders AB	Candover Partners	-	-	10.8x	-
Mar 2004	Sealy	Kohlberg, Kravis & Co.	-	-	8.7x	-
Nov 2003	Simmons	Thomas H. Lee Partners	-	-	9.1x	-
Nov 2002	Aero Products International, Inc.	Investcorp	-	-	7.5x	-
Oct 2002	Tempur-Pedic International Inc.	TA Associates	-	-	5.6x	-
Oct 1998	Simmons	Fenway Partners	-	-	7.5x	-
Dec 1997	Sealy	Bain Capital LLC	-	-	7.6x	-
	Mean			-	8.0x	-
	Median			-	7.5x	-

EV / LTM EBITDA selected range: 8.0x - 10.5x

11 comps


Aug 2012	AOT Bedding Super Holdings, LLC (Serta/Simmons)	Advent International Corporation	$3.0B	-	11.4x	-
Sep 2009	Simmons Bedding Company	Ares Management LLC	$760M	-	6.4x	-
Aug 2005	National Bedding Co.	Ares Management LLC	$830M	-	9.2x	-
Mar 2004	Sealy Corporation	Kohlberg Kravis Roberts & Co. L.P.	$1.4B	-	8.8x	-
Nov 2003	Simmons Company	Thomas H. Lee Partners	$1.0B	-	10.9x	-
Nov 2002	Aero Products International, Inc.	Investcorp Bank B.S.C.	$232M	-	7.5x	-
Oct 2002	Tempur-Pedic International Inc.	TA Associates Inc.	$390M	-	6.8x	-
Jun 2000	Crescent Sleep Products Company	Sleepmaster L.L.C.	$127M	-	13.6x	-
Jul 1998	Simmons Company	Fenway Partners, Inc.	$496M	-	8.2x	-
Dec 1997	Sealy Corporation	Bain Capital, LLC	$805M	-	7.8x	-
Mar 1996	Simmons Company	Investcorp Bank B.S.C.	$272M	-	6.9x	-
	Mean			-	8.9x	-
	Median			-	8.2x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

3 DCF scenarios

2 DCF scenarios

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Citi 3 DCF scenarios	8.4% – 10.0%	Perpetuity growth	2.25% – 2.75%	-	Q4 FY2012 through FY2016	Open
Perella Weinberg 2 DCF scenarios	9.75% – 11.75%	Perpetuity growth	3.0% – 4.0%	-	-	Open