Vuna Partners acquire majority stake in The Bed Shop
Press Release
May 2023
Vuna Partners acquire majority stake in The Bed Shop
ROSEBANK, Johannesburg, South Africa (May 2023) – Vuna Partners Fund I, the en commandite partnership managed by Vuna Partners Proprietary Limited (“Vuna Partners”), announces its recent acquisition of a 60% equity stake in Dynamic Bedding (Pty) Ltd, trading as “The Bed Shop”, the largest independent bed retailer in Southern Africa. The acquisition from the current majority shareholder, Vantage Capital, sees the remaining 40% equity stake being acquired by The Bed Shop's existing senior management.
Founded in 1994, Dynamic Bedding manufactures an extensive proprietary line of affordable, quality bed bases, mattresses and bedding accessories, exclusively distributed by its regional network of more than 100 corporate, franchise and online stores throughout South Africa, Namibia and Zambia, trading under the well-known The Bed Shop moniker. The company boasts a sophisticated manufacturing facility in Krugersdorp and is supported by an efficient in-house logistics and distribution team.
A strong customer-centric business model, paired with product innovation, has allowed the company to bring competitively-priced, locally-customised products to the Southern African retail bedding market, with quality and comfort of international standards. Backed by a seasoned management team, and boosted by recent improvements to its manufacturing capabilities as well as an expanded retail presence, The Bed Shop is well-positioned to meet the demands of a growing market of price-sensitive, yet discerning consumers throughout Southern Africa.
Vuna Partners and The Bed Shop's senior management acquired their respective equity interests from Vantage Mezzanine Fund II, a fund manager that previously facilitated a management buyout and which is reaching the end of its investment horizon. "The Bed Shop benefitted from a productive and valuable collaboration with Vantage", noted Jasothan Naidu, Managing Director of Dynamic Bedding. "Now, by aligning management’s significant stake with Vuna Partners, we look forward to the continued implementation of successful growth strategies and to the forging of further pathways to even greater success.”
“Our investment in, and partnership with The Bed Shop, represents a compelling opportunity to leverage a well-established household name and take the business to the next level. While the management team executes their accelerated growth strategy, we are committed to driving enduring, empowered value creation over the long term.”
The Bed Shop is the third addition to the Fund's investment portfolio, following the acquisition of SA Steelpack Solutions in 2021 and 4PL Group in 2020. Like its peers in the Vuna Partners' portfolio, The Bed Shop represents the profile of company that is typical of the Fund's investment mandate – one that possesses superior growth potential, exhibits a strong competitive advantage and is primed to deliver long-term value through unlocking transformational opportunities.
