Blue Bell Sells Majority Interest to PE Firm

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February 16, 2014

Carter Morse & Mathias ("CMM") is pleased to announce that Blue Bell Mattress Company ("Blue Bell") has sold a majority interest to private equity firm Longroad Asset Management. CMM served as Blue Bell's, exclusive financial advisor for the transaction and arranged the bank financing.

Blue Bell, located outside of Hartford, CT, is a Northeast licensee of the King Koil brand and sells both King Koil and private label inner spring and hybrid mattresses to bedding and furniture retailers in the Northeast and Mid-Atlantic region. Blue Bell serves more than 1300 store locations, and is one of the largest providers of bedding products in its geography. It is a third generation family-owned business that has been manufacturing bedding products since 1928.

Blue Bell will continue to be managed by Mark Kolovson and Steven Byer, both of whom will hold a significant stake in the Company. Mark Kolovson, CEO of Blue Bell, said "We are excited to have Longroad as our new partner as we embark on the next stage of growth. Longroad's experience working with middle market companies to source add-on companies and expand markets will be an asset as we continue to expand." Steve Byer, COO of Blue Bell, added "We could not ask for a better scenario than having Longroad invest in our business. Longroad's expertise will provide Blue Bell with the necessary resources and capital to expand and improve our operations."

Anne Whitman, Managing Director of Longroad, said "We were attracted to Blue Bell based on its reputation as an exceptional supplier due to its superior quality and operational efficiency to meet quick turn and high volume demand with its customers." Longroad Asset Management LLC, headquartered in Stamford, Conn., is a private equity firm founded in 2001 with more than $500 million in committed capital.

Gary Mathias, Managing Director of CMM, explained, "This transaction is another example of our expertise in executing sell-side mandates with strong, well-managed companies in the middle market. We worked closely with Blue Bell's owners to prepare the company for a full auction, arrange the senior debt financing, structure management's continued equity position, and support the team through an extensive due diligence and closing process. Key to the success of this transaction was the company's superior performance and our ability to raise attractive debt financing from Santander Bank."

About Carter Morse & Mathias
Founded in 1987, Carter Morse & Mathias, based in Southport, Connecticut, is a full service investment-banking boutique that provides the highest quality corporate finance advisory services to outstanding closely-held entrepreneurial and middle-market companies. CMM provides a full range of investment banking services, including sell-side advisory, raising capital, buy-side advisory, and valuation services. CMM is a charter member of AICA, an international network of M&A professionals in over 20 countries in the Americas, Europe, Asia and the Middle East. For more than 27 years, CMM professionals have helped hundreds of business owners to conceive, initiate, structure and close M&A and capital transactions. CMM's Broker/Dealer affiliate, Carter Capital Corporation, is a FINRA member firm registered with the SEC and SIPC.

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