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Ares Management Announces Two Deals

Ares Management, a Los Angeles-based investment management firm, announced two deals Tuesday, agreeing to buy the maker of Serta mattresses and taking a “significant” minority stake in the owner of Anchor Blue and Most casual clothing chains.

Ares Capital Opportunities, the firm’s private equity fund, and the private equity arm of the Ontario, Canada Teachers’ Pension Plan said they would pay an undisclosed sum for Chicago-based National Bedding Co., the 74-year-old firm that manufactures and licenses Serta mattresses, the industry’s third-largest brand.

Ares, meanwhile, invested $30 million for an undisclosed stake in Ontario, Calif.-based Hub Distributing Inc., whose Anchor Blue division operates 157 teen-oriented apparel stores and whose Most chain, featuring closeouts and irregular apparel from Levi Strauss & Co., has 82 outlets nationwide.

Founded in 1997, Ares has more than $7 billion of committed capital under management. Its investment portfolio includes such companies as House of Blues and Samsonite Corp.

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Private equity funds invest in privately held companies, often reselling them or taking them public years later.


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