Lehi, Utah – Coliseum Capital Management has made an unsolicited offer for mattress manufacturer Purple Innovation. Coliseum was already Purple’s largest investor, owning almost half of the company after it bought 9.9 million shares at the end of June.
The $4.35/share offer represented a 56% premium on Purple’s closing price the previous day. The share price shot up by a third in response.
Purple’s initial statement was that its board would carefully review the proposal and take the course of action it deems in the best interests of the company and all its shareholders.
The bid follows hot on the heels of Purple’s recent all-share acquisition of Intellibed, another Utah-based mattress maker that licenses Purple’s Gel Grid technology for its own products.
