PR Contact
Tia Krultz (tkrultz@ckpr.biz)
Phone: 312.616.2589
02.17.2009
Sealy, KKR and EDF Demonstrate Business and Environmental Benefits Go Hand-in-Hand
TRINITY, NC (February 17, 2009) – Sealy’s asset management firm, Kohlberg Kravis Roberts & Co. (KKR), a leading global asset firm, has partnered with Environmental Defense Fund (EDF) on the Green Portfolio Project, a first-of-its-kind initiative which recently revealed environmental management can help drive business success even in today’s challenging economic climate. Sealy is one of three pilot companies that together has already saved approximately $16.4 million in operating costs, and avoided 25,000 tons of greenhouse gas emissions, 3,000 tons of paper use and 650 tons of solid waste by implementing the tools developed through the partnership in 2008.
“As North America’s No. 1 bedding manufacturer, its imperative we take a strong leadership position in protecting and sustaining the environment,” said Larry Rogers, Sealy president and CEO. “In light of the difficult environment for the mattress industry, we continue to make progress in the areas of our business we can control and the Green Portfolio Project further demonstrates Sealy’s commitment to cost efficiency, as well as being environmentally responsible.”
The Green Portfolio Project began in May 2008, building on successful environmental initiatives already underway. The project brings together KKR’s private equity model of building strong companies for the long term and rigorous metrics for performance improvement with EDF’s environmental expertise. Together, the companies developed a set of analytic tools and processes to establish goals and measure improvements in companies’ key environmental performance areas including greenhouse gas emissions, waste, water, forest resources and chemicals.
Sealy currently is reducing waste in product manufacturing and decreasing greenhouse gas emissions from product transportation. In 2008, Sealy developed baselines for solid waste management and greenhouse gas emissions and reduced its impacts in these areas by recycling raw materials used for producing bedding and improving fuel efficiency of the delivery fleet through targeted driver policies and improved truck technologies.
The process helped Sealy to cost-effectively improve efficiency and reduce waste while addressing the environmental impacts of business, saving $1.2 million in fuel cost savings and avoiding over 3,000 metric tons of CO2 emissions (equivalent to over 600 cars) by improving the efficiency of its fleet by almost 9% (gallons/stop). In addition, Sealy saved over $4 million in material costs and avoided 650 tons of solid waste (equivalent to over 46 garbage trucks) by improving its material efficiency by 16% in 2008.
This year, Sealy plans to further reduce greenhouse gas emissions from energy and fuel use by improving delivery routing, installing speed governors, reducing idling time and incentivizing drivers to improve mileage performance. The company also plans to continue reducing the amount of solid waste produced by improving material recycling rates and manufacturing processes.
About Sealy Corporation
Sealy is the largest bedding manufacturer in the world with sales of $1.7 billion in 2007. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy®, Sealy Posturepedic®, Stearns & Foster®, and Bassett® brands. Sealy operates 26 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to 2,900 customers with more than 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry. For more information about Sealy's products, please visit www.sealy.com.
About Kohlberg Kravis Roberts & Co.
Established in 1976, KKR is a leading global alternative asset manager. The core of the Firm’s franchise is sponsoring and managing funds that make private equity investments in North America, Europe and Asia. Throughout its history, KKR has brought a long-term investment approach to portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Additional funds that KKR sponsors include KKR Private Equity Investors, L.P. (NYSE Euronext Amsterdam: KPE), a permanent capital fund that invests in KKR-identified investments; and two credit strategy funds, KKR Financial Holdings LLC (NYSE: KFN) and the KKR Strategic Capital Funds, which make investments in debt transactions. KKR has offices in New York, Menlo Park, San Francisco, Houston, Washington D.C., London, Paris, Hong Kong, Beijing, Tokyo and Sydney. More information about KKR is available at: www.kkr.com.
Forward-looking Statement
This release may contain various forward-looking statements and information that are based on Sealy's beliefs, as well as assumptions made by and information currently available to Sealy. When used in this or other releases or communications to the public, words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the plans and objectives of Sealy for future operations are intended to identify forward-looking statements. Although Sealy believes that such expectations reflected in such forward-looking statements are reasonable, Sealy cannot give assurances that such expectations will prove to be correct. Sealy has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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