Simmons Sale Approved By Federal Regulators

Posted by MCC on November 5th, 2009 at 07:00am

The proposed Simmons sale has been given antitrust clearance by federal regulators. The Federal Trade Commission recently granted early clearance to the purchase of Simmons by the Ares Management and the Ontario Teachers Pension Plan under the Hart-Scott-Rodino antitrust regulations.

Simmons is now seeking to get the votes from all of it’s creditors in favor of the sale. The company expects to be filing a prepackaged Chapter 11 bankruptcy which will pave the way for the deal. The creditors votes must be received by November 12.

In early October, Simmons announced the plans that Ares and the Ontario Teachers group had agreed to purchase the company for around $760 million. The company has announced that the deal will enable them to cut their total amount of debt from around $1 billion to $450 million.

Under Furniture News