Nearly four months after receiving an unsolicited takeover bid from Coliseum Capital Management, Purple announced it rejected that proposal.
A special committee of the DTC mattress brand’s board rejected the $4.35 per share unsolicited, non-binding proposal from Coliseum to acquire all of Purple’s outstanding common stock that it does not already own, according to a company press release earlier this month. Coliseum, which initially sent the bid in September, owns about 44% of the company’s outstanding shares.
Purple initially rejected the bid in November. In discussions following that, Coliseum was still unwilling to offer more than $4.35 a share, Purple said in its announcement. Purple’s stock price closed at $5.90 on Jan. 12, the day it rejected Coliseum’s takeover bid.
"The Coliseum proposal undervalues Purple and fails to recognize the strength of our business today as well as our compelling future prospects," Purple Chairman Paul Zepf said in a statement. "We remain confident in our ability to create significantly more value for all shareholders as we execute our long-range strategic plan under the company's new leadership team."
A week later, the DTC brand said Coliseum is now trying to overturn and replace most of Purple’s board, according to a Thursday statement from the special committee. Coliseum's Managing Partner Adam Gray has served on the company’s board since Purple went public in 2018.
“Coliseum's current proposal to reconstitute Purple's Board of Directors goes beyond what we consider appropriate: Coliseum is seeking the right to appoint, identify or approve every member of Purple's Board, leaving Purple's other shareholders with no representatives on the Board who have not been endorsed by, and who do not serve at the pleasure of, Coliseum,” the statement said.
Purple recently also added to its leadership team. The company brought on Scott Kerby — who has experience at retailers like Sephora, Old Navy and Bath & Body Works — as its chief of owned retail. The appointment adds to the growing number of seasoned executives joining Purple’s team recently under CEO Rob DeMartini.
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