Slumberland springs a deal to buy up Dunlopillo arm

SLUMBERLAND, the bed maker owned by Hilding Anders, has struck a deal to buy the Dunlopillo bed and mattress business in the UK and Ireland.

Dunlopillo, which generated turnover of 14 million last year, supplies beds, pillows and mattresses to stores such as Harrods, John Lewis and Allders.

Under the deal - understood to be worth around 12m - Swedish-based Hilding Anders will buy the assets of the business and take on the rights to the Dunlopillo brand in the UK and Ireland. Following the sale Dunlopillo will change its name to Dunlop Latex Foam and concentrate on manufacturing latex foam for use inside mattresses and pillows. It will retain ownership of the Dunlopillo brand in 70 countries overseas.

The group will continue making latex foam products at its site in Harrogate, North Yorkshire, where it employs 320 staff, although around 80 people will transfer to Hilding Anders. Those moving will initially stay at the existing Dunlopillo premises but are expected to move to Slumberland’s facilities in Oldham, near Manchester, next year.

Richard Smith, chief executive of Dunlop Latex Foam, said: "The sale of the consumer products operation is a key factor in our long-term business strategy.

"We can now focus on the production of latex foam materials."

Patrick Newstead, managing director of Hilding Anders UK, said: "The two bedding brands are complementary and appeal to different sectors of the market.

"Dunlopillo is a well-established luxury brand at the premium end, with an estimated 20 per cent market share in that sector. Slumberland’s strength is in the mid-market sector."

The Dunlopillo beds business was owned by conglomerate BTR - now Invensys - until a management buyout in 1997 backed by Bridgepoint Captial, 3i and Royal Bank of Scotland.