Utah, US – Mattress manufacturer Purple has once again rejected Coliseum Capital Management’s attempt to gain full control of the company. It already owns about 44.7% of the business, with the remainder of the stock held by public market investors.
Purple said Coliseum has now made several takeover attempts without offering to pay an adequate control premium. “We would like to ensure that the public shareholders, who own approximately 55% of Purple, continue to have influence over the company and a voice in its governance,” said Dawn Zier, chair of the Purple board’s special committee.
The tale dates back to September, when Coliseum tried to buy the remainder of the company’s stock at a price Purple did not believe reflected its long-term value. Days after the rejection, Coliseum stated that it planned to nominate a competing slate of director candidates at the 2023 annual shareholders’ meeting.
Several settlement proposals made by Purple’s special committee have been rejected by Coliseum. These included Coliseum nominating three of six non-management members within a seven-person board, a Coliseum managing partner chairing the board, and an existing independent director selected by Purple as the lead independent director.
Zier added that the Purple proposals would give Coliseum-nominated directors influence on the board that was in proportion to its ownership stake. “We will continue to work towards reaching a solution that treats all parties – including Coliseum – fairly,” she said.