Purple Innovation Inc. recently acquired Advanced Comfort Technologies, which trades as Intellibed, in an all-share deal. Purple's largest investor, private equity fund Coliseum Capital Management LLC, has made a bid to buy all outstanding shares in the Utah mattress maker.
The largest shareholder in mattress maker Purple Innovation Inc. has submitted an unsolicited bid to buy all outstanding shares in the Lehi, Utah-based company.
Private equity company Coliseum Capital Management LLC submitted a letter to Purple on Sept. 17 saying it would pay $4.25 per share, a 56 percent premium to the $2.79 price listed on Sept. 16, according to a proposal filed with the U.S. Securities and Exchange Commission. Coliseum already owns 45 percent of Purple.
"The Purple Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of Purple and all Purple shareholders," the company said in a news release.
Coliseum also has a minority ownership, 18 percent, in mattress maker Tempu-Pedic International.
Purple use thermoplastic polyurethane and an unspecified proprietary polymer in its mattresses. The company has seen a slowdown in sales — similar to its competitors — since the height of the pandemic saw increased spending in household items. However it opened a new manufacturing facility in Georgia last year to add to its operations in Utah.
It also announced Sept. 1 that it had acquired its Utah neighbor, Advanced Comfort Technologies, which trades as Intellibed, in an all-share deal. Salt Lake City-based Intellibed has been licensing its gel technology from Purple for a number of years.
"This acquisition allows us to consolidate our IP under one roof, and truly capitalize on the increased consumer interest and demand for Gel Grid technology,"Purple CEO, Rob DeMartini said in a news release.
He added that the acquisition should allow his company to accelerate its product development schedule by several years, and move into the luxury end of the sleep and wellness industry where margins are higher.
The Intellibed brands will be folded into a luxury Purple product line, with prices ranging from $1,399 for a premium mattress up to more than $7,000 for luxury products. The new luxury line is expected to make its debut in early 2023.
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]
Please enter a valid email address.
Please enter your email address.
Please select at least one newsletter to subscribe.
Staying current is easy with Plastics News delivered straight to your inbox, free of charge.
Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.
1155 Gratiot Avenue Detroit MI 48207-2997