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January 12, 2017

Phoenix, AZ – Brooklyn Bedding, a leading manufacturer of mattresses and bedding and one of the leading online mattress brands, has merged with Nest Bedding, Inc., another top retailer of mattresses and bedding products. The result is a vertically integrated company that is now one of the market leaders, based on revenues, in the burgeoning “bed in a box” industry. This e-commerce segment of the mattress industry is disrupting the traditional “brick and mortar” segment similar to what was seen in the books and consumer electronics industries in the early 2000’s.

Nest Bedding sells its products through its website, www.nestbedding.com, as well as through its “brick and mortar” stores which are located in premium markets around the U.S., including NYC, Santa Monica, Costa Mesa, Palo Alto, San Francisco and, soon to be, Chicago. Additionally, through its partnership with AirBnB, Nest Bedding can be experienced in an additional 60+ locations around the United States. This combination of e-commerce and physical showrooms creates a true “bricks and clicks” experience that is unique in the industry. With the merger, Nest Bedding envisions opening showrooms in every major market in the country.

Brooklyn Bedding innovates, manufactures, and sells mattresses and bedding nationally through www.brooklynbedding.com and other popular e-commerce sites such as Amazon. Brooklyn Bedding is one of the few companies in the sector that operates its own state-of-the-art 145,000 square foot manufacturing facility, providing full control over its products, delivery and quality.

“We are extremely excited to partner with Brooklyn Bedding, one of the leaders in the ‘bed in a box’ industry”, said Joseph Alexander, founder of Nest Bedding. “Brooklyn Bedding was already our primary supplier and now, with them as our partners, the relationship will continue to flourish. Together we are stronger than either of us were individually.”

Brooklyn Bedding’s CEO and co-founder, John Merwin, said of the transaction: “We have always admired Nest Bedding’s ‘bricks and clicks’ strategy. Together, we are a vertically integrated company, from manufacturing to e-commerce to physical retail stores. Together we have multiple brands and sales channels which we believe creates tremendous growth potential.”

“This really was the perfect marriage of two ‘bed in a box’ companies. The people and strategies fit together perfectly. With the combined scale and management teams, we believe they are one of the leaders in the industry”, said Duane Stullich, Managing Partner at FocalPoint Partners, financial advisor on the transaction.

About FocalPoint Partners, LLC

FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings, and special situation transactions. With offices in Los Angeles and Chicago, the firm serves middle market clients throughout the U.S. Since its inception in 2002, FocalPoint has completed approximately $5 billion in transactions. For more information about FocalPoint Partners, visit focalpointllc.com.

Please contact Duane Stullich , Managing Partner, at (310) 405-7070 with questions about this transaction.

Securities products and services are offered through FocalPoint Securities, LLC.