Citic Capital buys stake in Chinese mattress maker

Citic Capital Partners has acquired a controlling stake in Chinese mattress maker and retailer King Koil Shanghai Sleep System.

Private equity firm Citic Capital Partners said on Monday it has acquired a controlling stake in Chinese mattress maker and retailer King Koil Shanghai Sleep System. 

The investment was made through Citic Capital China Partners II, L.P., its second China-focused buyout fund. Citic Capital Partners is the private equity arm of Citic Capital Holdings.

Shanghai-based King Koil sells mattresses to hotels and retail customers and is the exclusive licensee of brands such as “King Koil”, “Aireloom”, and “Life Balance” in China.

“King Koil is a leading player in the premium mattress segment with strong brand recognition and a highly-skilled management team," said Yichen Zhang, chairman and chief executive of Citic Capital Holdings.

Citic Capital Partners expects the China retail mattress market to grow at over 15% per annum in the next five years and at an even higher growth rate for the premium segment.

The private equity firm invested because it believes luxury hotel chains will also expand in China and King Koil is well-positioned given its strong presence in the high-end hotel segments and strong brand recognition in China premium mattress market.

“The highly-fragmented mattress market in China is currently undergoing rapid consolidation and we look forward to working with our new shareholder to become a major force in the market in future," said Stephen Wang, managing director of King Koil.

¬ Haymarket Media Limited. All rights reserved.