Pouschine Cook Capital Management

Spring Air Partners – North America

Spring Air Partners-North America (“SAPNA”) was formed in 1999 for the acquisition of the North Arlington, NJ and Philadelphia, PA licensees of The Spring Air Company (“TSAC”), a licensing organization founded in 1926 and one of the largest bedding manufacturers in the U.S. The 1999 transaction was sponsored by Kenmare Capital, with subsequent acquisitions of the Los Angeles, CA, Eastern Canada and Dallas, TX licensees.

SAPNA was a multi-regional bedding manufacturer serving parts of the United States and Canada. The company manufactured mattresses and box springs that it sold to local, regional and national retailers. The availability of multiple brands allowed it to customize its offerings to each particular retailer.

Insight

Pouschine Cook became knowledgeable about the company and its individual licensees, and of the opportunity to roll up the group into one entity, when it looked at acquiring the entire Spring Air group.  Such a combination would provide an opportunity for substantial synergies.

Flexibility

Pouschine Cook purchased a strategic non-control ownership position to finance the acquisition of a large licensee.

Enhancement

Pouschine Cook rolled up its sleeves to establish and set a new and coordinated direction for the company, including its policies and procedures, information systems and management team. The company significantly exceeded the industry in its growth for several years until mismanagement and significant capital constraints lead to the company entering into Chapter XI. The company emerged under new ownership and continued to pursue and finally completed the original plan of licensee-wide consolidation of TSAC.

www.springair.com