Hillhouse Emerges as Preferred Bidder for $2 Billion King Koil China

(Bloomberg) -- Hillhouse Capital Management has emerged as the preferred bidder for Advent International’s King Koil China mattress business in a deal that could be valued at more than $2 billion, according to people familiar with the matter.

Talks are in an advanced stage and an announcement could come as soon as this week, said the people, who asked not to be identified as the information is private.

Discussions could still be delayed or fall apart, the people added. A representative for Hillhouse couldn’t immediately comment, while a representative for Advent didn’t immediately respond to requests for comment.

Advent International has been in talks with advisers about a prospective deal for King Koil China, Bloomberg News reported in February. The U.S. buyout firm was considering options including a sale, initial public offering as well as a consolidation of the mattress maker.

Founded in 1984, Advent International has invested $56 billion across 42 countries, according to its website. The fund bought a majority stake in King Koil China from Citic Capital Partners in 2016 for an undisclosed amount, according to a statement.

The King Koil brand traces its roots to 1898. King Koil China, which was set up in 2000, is the exclusive licensee of several international mattress brands such as King Koil, Aireloom and Life Balance in the world’s second-biggest economy.

©2021 Bloomberg L.P.