Casper Sleep, the trendy mattress-in-a-box company, is being taken private barely two years after its splashy public debut.
The company announced Monday that private equity firm Durational Capital Management is buying Casper at $6.90 per share — a 94% premium on Friday’s closing price of $3.55 per share. The stock soared as much as 90% in early trading.
Casper’s board consulted with advisers and “evaluated a range of strategic and financial alternatives over several months and determined, after careful consideration, that the transaction proposed by Durational is superior to all other alternatives available,” said Casper CEO Philip Krim.
The deal is expected to close in early 2022. Casper’s board has already approved the move and recommends its shareholders support it too.
Durational Capital describes itself as an “investment firm that invests in high quality consumer companies.” It is currently invested in Bojangle’s, a fast food chicken chain primarily in the southern United States, and was previously invested in Churchill Downs and Sanderson Farms.
Casper’s exit is a stunning turn of events for the company, which went public at $12 per share in February 2020. However, a crowded marketplace and the infrequency of mattress purchases by consumers made it difficult for Casper to become a successful standalone business.
The New York-based company got its start in April 2014 after raising almost $2 million from venture capital firms and angel investors. Casper captured consumers’ attention first with its mattress that fit into a cardboard box the size of a mini-fridge, and the company has since expanded to a portfolio of products including dog beds. The startup attracted several high-profile investors, including rapper Nas and actor Ashton Kutcher.
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