Franchising News South Africa

The Bed Shop owner Dynamic Bedding changes hands

Specialist bed company Dynamic Bedding, the franchisor and exclusive supplier to Southern African retailer The Bed Shop, has been acquired by its senior management and private equity fund manager Vuna Partners.

The deal results in Vantage Capital, Africa’s largest mezzanine debt fund manager, fully exiting its investment in Dynamic Bedding.

Founded in 1994, Dynamic Bedding manufactures a wide range of bed bases and mattresses from its facility in Krugersdorp just outside Johannesburg, and distributes its products to a nationwide network of 106 retail stores around Southern Africa operating under The Bed Shop brand. The Bed Shop stores are located in South Africa, Namibia and Zambia.

Fruits of business restructuring

Vantage Capital invested in Dynamic Bedding in 2014 and became the controlling shareholder as it led the business through an operational restructuring that included strengthening its senior management team, a re-engineering of its manufacturing facilities as well as a comprehensive revamp of its retail offering and marketing strategy.

"The focus throughout has remained on providing customers with the best quality beds at the right price – a message which has appealed to cash-strapped consumers in search of a value-for-money product that offers the same quality as international brands but at more affordable prices. This product positioning has enabled Dynamic Bedding to grow its market share despite broader weakness in the South African consumer retail environment," Vantage Capital said in a statement.

As demand for the company's products has grown, Dynamic Bedding has expanded its store network by adding more than 20 new stores within the past two years. It also hired an additional 200 employees to support the growing manufacturing and retail operations.

David Kornik, partner at Vantage Capital who served as chairman of Dynamic Bedding, commented, “It has been a rewarding journey working closely with the senior management team to unlock the potential of the business. Dynamic Bedding has always set itself apart from the competition with its affordable, high-quality product range and its nationwide network of proprietary retail stores.

“It was customer engagement that needed improvement, and this has now been achieved through the enhanced look-and-feel of its retail stores, improved store management, modernised branding and re-invigorated marketing drive. The business is now on a strong growth trajectory and is looking to continue opening more stores to fulfill the ever-growing demand for its products.”

Jasothan Naidu, managing director of Dynamic Bedding, said, “Vantage has provided valuable guidance and support as we’ve worked closely together in formulating and implementing the strategic plan for the business. It’s been a productive collaboration and we’re proud of what we have achieved together so far – but this is also just the start. We believe that huge potential remains and we look forward to working alongside Vuna Partners in the next chapter.”

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