Purple Innovation has confirmed that investment firm Coliseum Capital Management made an unsolicited, non-binding proposal to acquire all outstanding capital stock of the digitally native mattress company for $4.35 per share on Sept. 17, 2022. The news of the acquisition bid sent shares of Purple soaring to approximately $3.85 when markets opened Sept. 19, 2022, up from $2.79 when markets closed on Sept. 16, 2022 — an increase of nearly 39%. Purple’s Board of Directors is in the process of reviewing the proposal.
Over the last few months leading up to the offer from Coliseum, Purple has been busy fortifying its business as the company positions itself for growth. On Sept. 1, 2022 Purple acquired Advanced Comfort Technologies, Inc., also known as Intellibed, a manufacturer of luxury gel-based mattresses. Under the deal, Intellibed merged with a Purple subsidiary, which positioned Intellibed as a subsidiary of Purple.
“Intellibed has licensed certain aspects of our gel technologies for many years, therefore this acquisition allows us to consolidate our IP under one roof while at the same time enhancing Purple’s manufacturing capabilities and financial profile,” said Rob DeMartini, CEO of Purple in a statement. “Additionally, Intellibed’s premium market position allows Purple to accelerate its product development schedule by several years and immediately address the more luxury, higher-margin segment of the sleep and wellness industry.”
In June 2022, Eric Haynor took the reins at Purple as the company’s COO to guide the company’s future growth via improvements to supply chain management and manufacturing. The appointment of Haynor, a 30-year supply chain veteran, positioned Purple to strengthen its business through direct-to-consumer channels, brick-and-mortar retail, third-party online retailers and owned retail showrooms.