Mar 16, 2018

Capstone Partners Advised Purple Innovation on its Sale to Global Partner Acquisition Corp.

Capstone Partners, advised Purple Innovation, LLC (Purple or the Company), a comfort technology company known for creating the “World’s First No Pressure™ Mattress,” on its sale to Global Partner Acquisition Corp. (GPAC), a special purpose acquisition company. The transaction was approved at a special meeting of the Company’s stockholders held on February 2, 2018.

It was truly a pleasure to work with Terry, Tony, and the entire Purple team. Few companies ever achieve the growth, scale, brand recognition, and cult-like following that Purple has achieved in such a short time-frame. This is a testament to not only the differentiated products the Company is building, but to the world-class marketing team that is using cutting-edge tools to develop innovative content and drive such exceptional user engagement. We are delighted to have found a partner that will support Purple’s continued growth, while accelerating the company’s goal of becoming the first direct-to-consumer mattress player in the US to go public.

Shaun KalnasyFormer Managing Director, Capstone

Purple is a leading comfort technology company which designs and manufactures products to improve how people sleep, sit, and stand. It designs and manufactures a range of products, including mattresses, pillows, and cushions using its patented Hyper-Elastic Polymer® technology. Since launching in 2016, the Company has developed multiple proprietary and innovative products and has been one of the fastest-growing, digitally-native brands in the mattress and home good categories.

The Company, which manufactures the majority of its products at its facility outside of Salt Lake City, sells through its website, eCommerce retailers, and traditional retail channels. Purple is widely recognized and known for its humorous viral videos, which have been viewed over one billion times, and are a key driver of the Company’s rapid growth.

Transaction Summary

Under the terms of the merger agreement entered into by the Company, Purple, and other parties, GPAC has changed its corporate name to Purple Innovation, Inc. The Company’s common stock and warrants were listed on NASDAQ on February 5, 2018 under the symbols “PRPL” and “PRPLW”.

Pursuant to the Merger Agreement and the related transactions, GPAC’s common stock has been renamed “Class A” common stock. In addition, the Board of Directors of GPAC has been enlarged with the election of additional directors, and a new slate of officers of the Company has been appointed, including the appointment of Sam Bernards as Chief Executive Officer. Following the merger, approximately 82 percent of the Company’s voting securities are owned by a company controlled by the founders of Purple, Tony and Terry Pearce. Upon the merger, the previously trading units of GPAC, which consisted of one share of common stock and one warrant, will no longer trade as a unit, but will trade separately as stock and warrants.

Awards & Accolades

  • 2018: Consumer Goods & Services Deal of the Year