British mattress manufacturer Hypnos has secured long-term financing from Independent Growth Finance (IGF), providing "a strong foundation for growth".
Hypnos says the new asset-based lending facility will provide the business, which has a rich, 120-year heritage, supplying bespoke beds for both the retail and hospitality markets, with a platform to capitalise on growth and development opportunities across the UK and internationally.
John Savage, ABL director at IGF, comments: “With a strong legacy and a clear vision for the future, Hypnos is in a great position for its next phase of growth. We’re proud to support such an iconic British brand with a flexible asset-based lending (ABL) facility, designed to scale and adapt alongside their evolving growth plans.”
The refinancing follows a period of strategic change and focus for the group over the last two years, with significant investment in new IT infrastructure, a new logistics partner for a more sustainable delivery service, and exiting from five operating sites. Together, says Hypnos, these changes will see it focus on its core and historical specialism of handcrafted mattress and bedmaking through "a more efficient and sustainable operating model".
“This is an extremely positive start to 2025 for the team at Hypnos, supporting our ambitious goals for future growth,” says David Baldry, Hypnos' group MD. “The company still has some optimisations to make and we will continue to evolve with business and market needs, however we now have a secure operational and financial foundation for growth over the coming decades.
"I’m proud of the commitment from the board and wider team to the company whilst we have been making these changes to deliver further improvements of their own across our business. My thanks go out to them.”
Having experienced a strong start to 2025 in the UK in across retail and hospitality sectors, the brand recently launched a new Wool Series mattress collection into the US, and is seeing international growth thanks to its partners in Europe, South Korea, South Africa and beyond.
James Keen, Hypnos' CEO, says: “Having just celebrated our 120th year, Hypnos is now well positioned for growth. As a fifth-generation, family-owned business, the Keen family are passionate about developing and leading the sector. I am excited to work with such a talented team to deliver our next chapter as a great British brand.”
PwC’s Debt & Capital Advisory team advised on the deal, led by Emma Lister, with support from Richard Davies, Alex Retamal and Emily Stansfield. Emma comments: "We are delighted to have supported Hypnos with this successful refinancing. This transaction highlights the importance of the ABL market in providing flexible financing solutions for businesses that sit at the heart of UK craftsmanship.”
Pictured: James Keen and David Baldry
