TORONTO, March 1 /CNW/ - Private equity firm Genesis Capital Corporation
("Genesis Capital") today announced its acquisition of Ultramatic Sleep of
Canada ("Ultramatic"), supplier of electric adjustable beds. Full terms of the
transaction have not been disclosed.
Founded nearly 25 years ago, Ultramatic is a privately-held distributor
of electric adjustable beds with operations across North America. Based in
Burlington, Ontario, Ultramatic sells directly to consumers and is the largest
provider of adjustable beds in Canada.
Genesis Capital will take a majority ownership stake in Ultramatic,
bringing the company valuable know-how in order to improve its operations and
build on its market-leading position. Demand for Ultramatic's premier sleep
systems is poised to rise with aging populations and trends that indicate a
shift in consumers' tastes to higher premium products, especially those with
apparent health benefits. Ultramatic's target customer is 50 years or older.
The U.S. bedding industry, which includes both mattresses and
foundations, is estimated to generate sales of about US$6 billion a year.
Canadian annual sales of mattresses and foundations have seen a steady
increase, growing 7.5% a year from 1997 to 2005.
Martin Philp, Partner at Genesis Capital, will become Ultramatic's
interim CEO for the foreseeable future. "We look forward to building on
Ultramatic's great reputation for providing world-class electric adjustable
beds and excellent customer service," said Mr. Philp. "At the end of the day,
we will be continuing to sell comfort and peace of mind."
Genesis Capital is pleased to have worked with VenGrowth Private Equity
Partners Inc. ("VenGrowth"), a premier Canadian private equity firm, and Royal
Bank of Canada, in the provision of financing associated with this
"The management team at Genesis Capital brings a wealth of experience and
expertise that will ensure Ultramatic's continued success in the company's
niche market; providing leading high-quality electric beds across North
America," said Graham McBride, Managing General Partner at VenGrowth.
About Genesis Capital
Toronto-based Genesis Capital is a private equity company focused on the
acquisition of traditional businesses. By forging strong partnerships with
investee companies, Genesis provides both capital and hands-on operational
management. For more information, visit www.genesiscapitalcorp.com
With more than 130 employees, Ultramatic sells electric adjustable beds
and accessories such as pillow tops for the mattresses, headboards and sheets.
Backed by unsurpassed warranties, Ultramatic's high-quality sleep system
possesses many unique features such as mattresses that incorporate heat
systems and built-in massages. For more information, visit
For further information:
For further information: Joe Kiervin, Associate, Genesis Capital
Corporation, (416) 214-2225, firstname.lastname@example.org