H.I.G. Capital Completes Acquisition of Pegasus Home Fashions

BOSTON–(BUSINESS WIRE)–#Acquisition–H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $45 billion of equity capital under management, is pleased to announce that one of its affiliates has completed the acquisition of Pegasus Home Fashions, Inc. (“Pegasus” or the “Company”).

Founded in 1990 and headquartered in Elizabeth, NJ, Pegasus is one of the country’s largest and fastest growing poly-filled pillow manufacturers with several manufacturing facilities located throughout the United States. The Company has a broad portfolio of licensed, private label, and proprietary brands and currently services blue chip customers within the mass-market, warehouse club, and specialty channels. Pegasus is poised for continued growth from expanding its portfolio of company-owned and licensed brands, establishing new and growing its existing customer relationships and channels, and pursuing strategic add-on acquisitions within new and existing product categories.

“We are extremely excited to have the opportunity to work with the Pegasus team. Carmine and Gail Spinella have built an exceptional business and we look forward to providing the resources to the organization to enable it to successfully capitalize on its many growth opportunities,” said Todd Ofenloch, Managing Director at H.I.G.

“Partnering with H.I.G. allows us to continue our rapid growth and find creative ways to better service our retail partners,” said Carmine Spinella, Founder of Pegasus. “We are excited to have H.I.G. as an investor during this next phase of our growth.”

Pegasus’s existing management team will continue to run the business going forward. MidCap Advisors acted as financial advisor to Pegasus, and Brown Moskowitz & Kallen acted as legal counsel to the Company on the transaction. Latham & Watkins provided legal advice to H.I.G.

About Pegasus

Pegasus is headquartered in Elizabeth, NJ and has 5 manufacturing facilities located throughout the United States. The Company services blue chip customers within the mass-market, warehouse club, and specialty channels. In addition to selling under its own proprietary brands (including the “Essence Of” collection, Planet Pillow, and America’s Pillow), Pegasus manufactures for a portfolio of licensed brands (including Martha Stewart, BCBG Max Azria, and Beautyrest) and private label customers. The Company also wholesales ancillary bedding products, including mattress pads, toppers, and pillow protectors. For more information, visit https://pegasushomefashions.com/.

About H.I.G. Capital

H.I.G. is a leading global private equity and alternative assets investment firm with $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, São Paulo and Bogotá, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.