Mattress startup Purple merges with NY shell company in $1.1 billion deal

Purple, a Utah-based mattress startup, announced today it will merge with Global Partner Acquisition Corp (GPAC) in a deal that would value the company at $1.1 billion.
By Sarah Buhr.

Purple, a Utah-based mattress startup, announced today it will merge with Global Partner Acquisition Corp (GPAC) in a deal that would value the company at $1.1 billion.

Purple was already well on its way to that valuation when we got to take a sneak peek at operations at the company’s headquarters in the small town of Alpine, Utah and its giant factory an hour away in rural Grantsville last April. The new deal is known as a “reverse merger” and would result in Purple becoming a publicly traded company overnight, but without the formal IPO process.

High Times pulled something similar today when it sold itself to an already public special-purpose acquisition company called Origo. GPAC is the same type of setup, but owned by a number of financial management organizations.

At the close of this transaction, GPAC will add $90 million to the company coffers and take a 14 percent stake in the company.

Read more at TechCrunch.

Be first to comment