The Simmons Company, maker of Beautyrest mattresses, announced Friday that it agreed to be acquired by the Ontario Teachers' Pension Plan in a deal worth $760 million as a part of Chapter 11 restructuring plan.

Atlanta-based mattress maker Simmons Company said that the deal would allow it to cut its debt to $450 million from around $1 billion.

Around three-quarters of Simmons' note-holders have agreed to support the plan.

Speaking on the topic, Steve Fendrich, president of Simmons, said, "I'm delighted to tell you that the board of directors at Simmons has approved a restructuring plan and accepted a bid."

Simmons, which is possessed by Thomson H. Lee Partners, has been struggling under soaring restructuring charges.

Under the agreement, private-equity firm Ares and Teachers' Private capital, the private investment arm of the Ontario Teachers' Pension Plan and some of Simmons's current lenders will contribute equity.