Purple Innovation Rejects Unsolicited Proposal from Coliseum Capital Management
Purple Innovation, Inc. (NASDAQ: PRPL) has rejected a $4.35 per share unsolicited acquisition proposal from Coliseum Capital Management, which holds approximately 44% of Purple's outstanding shares. The Special Committee, comprising independent directors, determined that the proposal did not reflect the company's value or future prospects. They believe its rejection is in the best interests of Purple and its shareholders, asserting confidence in creating more shareholder value under the new leadership team. Financial and legal advisors supported the review process.
- Special Committee believes the proposal undervalues Purple and does not reflect its strong business fundamentals.
- Confidence expressed in ability to create greater value for shareholders through the long-range strategic plan under new leadership.
- The unsolicited proposal indicates potential pressure from major shareholders, which could affect management's strategic decisions.
Special Committee of the Board Comprised of Independent Directors Unaffiliated with
The Special Committee, which is comprised of disinterested and independent directors, rejected the Proposal in November after conducting a comprehensive review of the Company's long-range strategic plan and other opportunities in consultation with independent financial and legal advisors. In subsequent discussions with Coliseum, Coliseum was unwilling to offer more than
"The Coliseum proposal undervalues Purple and fails to recognize the strength of our business today as well as our compelling future prospects," said Purple Chairman
About Purple
Purple is a digitally-native vertical brand with a mission to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Our products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors' products. We market and sell our products through our direct-to-consumer online channels, traditional retail partners, third-party online retailers and our owned retail showrooms. For more information on Purple, visit purple.com.
Forward Looking Statements
Certain statements made in this release that are not historical facts are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include the risk factors outlined in the "Risk Factors" section of our Annual Report on Form 10-K filed with the
Investor Contact:
brendon.frey@icrinc.com
203-682-8200
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