YARMOUTH, Maine — Cuddledown Inc., the high-end bedding retailer based in Yarmouth, has been acquired by a catalog company in Massachusetts.
Potpourri Group Inc., or PGI, acquired Cuddledown in December, according to an announcement Thursday by American Capital Ltd., PGI’s parent company. Details of the transaction were not disclosed.
Cuddledown was founded in 1973 as a family business with one product: down comforters. Since then the company has grown to sell a diverse selection of bedding-related products through a catalog, its website and a retail store in Freeport. All the company’s down and synthetic bedding products are manufactured at its Yarmouth facility, according to Danielle Vayenas, a spokeswoman for the company.
Cuddledown employs roughly 120 people between its Freeport retail store, its warehouse in Portland and its corporate and manufacturing staff in Yarmouth, Vayenas told the Bangor Daily News.
It’s not yet clear how the acquisition will affect the company’s Maine-based operations, Vayenas said.
“It’s so new to us, we’re still finding out things,” she said, adding that meetings scheduled for next week should shed more light on what impact the acquisition will have on the company. “At this point we don’t know specifics.”
Vayenas said Cuddledown’s local management team, including CEO Chris Bradley, would remain intact.
PGI, based in North Billerica, Mass., was formed in 1998 as a catalog company. It now has 13 diverse catalogs, though they all cater primarily to women.
The acquisition of Cuddledown will allow PGI to expand into the bedding product sector, according to a media release.
“PGI’s management team has significant experience successfully integrating additional brands into its portfolio, fueling organic revenue growth and realizing considerable cost savings,” Helen Yang, a principal in American Capital’s buyouts group, said in a statement. “The addition of Cuddledown adds valuable diversification to PGI’s current merchandise mix and its similar customer demographics are expected to promote future growth.”
American Capital is a global private equity firm that has invested in PGI since 2005.