Coliseum Capital Management (CCM; Rowayton, Conn.), a private investment firm which already owns 40.9 million shares of direct-to-consumer mattress brand Purple (Lehi, Utah), recently bid to wholly acquire the retailer.
The unsolicited bid by CCM, confirmed by Purple in a released statement, would take control of Purple’s remaining common stock for $4.35 a share.
The mattress maker says its board of directors “will carefully review the proposal to determine the course of action that it believes is in the best interest of Purple and all Purple shareholders.”
The company then adopted a shareholder rights program – also known as a “poison pill” – which prohibits shareholders who currently own at least 20% of the company’s stock from purchasing additional shares. Coliseum Capital currently owns 45% of the shares outstanding.
Following Purple’s acquisition by Global Partner Acquisition Corp., the two entities merged as Purple Innovation LCC, going public on Nasdaq in 2018.