LEHI, Utah — Mattress manufacturer Purple Innovation announced it has acquired gel-based mattress manufacturer Intellibed, a deal in which Intellibed shareholders will receive 8 million shares of Purple’s Class A common stock.
Purple said it also may issue another 1.5 million shares of Class A common stock to Intellibed shareholders depending on the price of the stock over the next 18 months.
Intellibed sells a line of gel-based mattresses designed to offer back support, spinal alignment and pressure point relief. It had about $50 million in revenues in 2021.
Officials said this line is “highly complementary to Purple’s current offering” and will strengthen Purple’s revenue position.
“Intellibed is an excellent fit for Purple,” said Rob DeMartini, CEO of Purple. “Intellibed has licensed certain aspects of our gel technologies for many years, therefore this acquisition allows us to consolidate our IP under one roof while at the same time enhancing Purple’s manufacturing capabilities and financial profile. Additionally, Intellibed’s premium market position allows Purple to accelerate its product development schedule by several years and immediately address the more luxury, higher-margin segment of the sleep and wellness industry. We are excited about the combined potential of our two organizations.”
Scott Peterson, chairman of the board of Intellibed, said that Intellibed is “joining forces with one of the most respected sleep innovators in the industry.”
“This merger provides Intellibed with a great opportunity to reach a much broader consumer audience through Purple’s larger, more diversified wholesale distribution network and growing number of company-owned showrooms,” he added. “Additionally, we look forward to benefitting from the marketing prowess that has made Purple the number one online premium sleep brand and an overall market leader. We’re so pleased to align with a company that shares our vision for reinventing comfort.”
With the acquisition, Intellibed has merged with Gelato Intermediate, a subsidiary of Purple and will continue as a subsidiary of Purple, officials said.