Mattress Company Casper to Go Private

Casper Sleep Inc. announced on Monday (Nov. 15) that it has agreed to be acquired by Durational Capital Management in a deal that will take the mattress company private. Durational Capital will pay $6.90 per share, a 94% premium over the closing price on Friday (Nov. 12), the last trading day before the announcement was made.

Casper’s board of directors unanimously approved the deal and recommended that stockholders do the same to make the merger agreement official. The deal is expected to be finalized in the first quarter of next year, subject to customary closing conditions, including Casper stockholders’ approval.

The company also announced that Emilie Arel, who served as president and chief commercial officer at Casper, has been appointed CEO, assuming the role from Philip Krim, effective on Monday (Nov. 15).

“We are delighted to announce this transaction with Durational Capital Management that creates immediate and substantial value for shareholders and allows Casper to move forward on strong financial footing,” Krim, a co-founder of Casper, said in the announcement. He added that this provides the company with “much-needed capital to execute on future initiatives.”

When the deal is finalized, Casper will operate as a private company and will remain based in New York. Casper initially went public in February 2020, just before the COVID-19 pandemic began.

Read more: Casper IPO Ends Bumpy Debut at 13% Above Asking Price

“We are excited to invest in Casper given its iconic brand, strong growth profile and track record of innovation,” said Eric Sobotka, managing partner at Durational Capital Management.

Casper Sleep also announced an all-time quarterly revenue record of $156.5 million in the third quarter of 2021 ending Sept. 30, up 27% from the same time a year earlier. The company’s direct-to-consumer revenue, including its 72 retail stores and eCommerce sales, was up 6.7% in Q3 to $96.5 million, while retail partnership revenue grew 78.6% to $60 million.

Related news: Casper Adds to Executive Ranks; Hires Former Walmart Exec

In February, Casper Sleep appointed Charles Liu as chief operating officer, Dara Williams as chief people and diversity officer and George Poulios as vice president of retail, real estate and store development.