3Z Brands Makes Its Biggest Purchase with Leesa Sleep
July 19, 20232 min read
3Z Brands once again made headlines back in March 2023. The company is on an acquisition spree, folks, and there's no stopping them! This time, they've welcomed Leesa Sleep, a digital-native star, into their fold. Now, this isn't a small deal – it's actually their biggest acquisition so far and their third one in less than a year. Can you believe it?
Leesa Sleep now joins a thriving family of brands that include some familiar names - Brooklyn Bedding, Helix Sleep, Bear Mattress, Nolah, and Birch. If you're wondering about Leesa, it's a brilliant company that sprung up in Virginia Beach, Va back in 2014, thanks to David Wolfe and Jamie Diamonstein.
By the way, the acquisitions don't stop at Leesa. 3Z Brands had previously welcomed Bear Mattress in July 2022 and Nolah just some months ago. The company's CEO, John Merwin, who also co-founded Brooklyn Bedding, says that all this acquiring isn't just for fun. There's a plan behind the shopping spree. They're aiming to fill their humongous 648,165-square-foot factory in Glendale, Ariz., and also to meet consumers where they shop for bedding. Once Leesa and Nolah get settled, the facility will be working at 50% capacity, Merwin shared.
John Merwin is thrilled about the new addition, describing Leesa as an exceptional company built on the mission of delivering better sleep for customers and creating a positive community impact. He's keen on fostering Leesa’s growth using 3Z’s manufacturing expertise and digital capabilities.
You know, since it was founded, Leesa has donated more than 40,000 mattresses to folks in need through a network of community partners, shelters, and veterans' organizations. Plus, it's not just on their website that you can find Leesa's products. You can also shop for them at West Elm, Pottery Barn, Costco, Home Depot, and even Amazon.
Leesa's co-founder Diamonstein reminisced about their journey, how they wanted to simplify the buying process, create innovative product designs, and make a social impact. These cornerstones, he believes, will continue to drive the Leesa brand in this new phase of their business. The Leesa team is pretty proud of their achievements over the past decade and are excited about growing further under 3Z Brands' expertise and support.
Speaking of the past, Wolfe, an e-commerce entrepreneur, and Diamonstein, a bedding industry veteran, joined forces to launch Leesa. By mid-2015, they'd secured $9 million in funding from investors and managed to raise another $23 million by 2017. At the time, they were aiming to hit sales exceeding $200 million in 2018, though the current sales figures are hush-hush.
In an interesting twist, Brooklyn Bedding and Helix Sleep partnered through an acquisition by Cerberus Capital Management in 2021. It looks like there's never a dull moment in the world of bedding!