After all the podcast ads, Casper sells to a private equity fund

Casper Sleep will be acquired by the private equity firm Durational Capital Management, which will take the box spring mattress business privately, the companies announced on Monday. The deal is expected to close in the first quarter of 2022.

Casper was founded in 2014 and was one of a handful of companies whose ads were ubiquitous on podcasts, selling its products directly to consumers.

The company was listed in February 2020 with plans to expand from its primary business of direct-to-consumer (D2C) sales of box spring mattresses to products that “promote the ideal atmosphere for sleep,” according to its S-1 prospectus. This list of products included sleep tracking devices, bedside clocks, sleep services like digital apps and counseling and even sleep supplements. But besides mattresses and things that go on mattresses – like sheets and pillows – the most notable product Casper has produced to date is its Glow bedside lamp.

Casper began adding retail locations in 2018 and sold its products at retailers such as Target and Mattress Warehouse, but struggled to make a profit in the increasingly crowded direct-to-consumer (D2C) mattress market.

On Monday, Casper reported losing $ 25.3 million in the third quarter, compared to a loss of $ 15.9 million in the quarter last year. The company also announced that its president and commercial director Emilie Arel has been appointed CEO, taking over from Casper co-founder Philip Krim.

Casper’s Board of Directors unanimously approved the acquisition, which is awaiting approval from Casper shareholders.

Leave a Comment