Casper Sleep to be Taken Private by Private Equity Firm
Nov 15, 2021 By MarketDepth
Casper sleep (NYSE: CSPR), revealed Monday that it will be taken private by a private equity firm named Durational Capital Management. The deal values the company at about 94% premium to Friday’s closing price and is expected to close in the first quarter of 2022.
Premium Share Price
The mattress maker closed Friday at USD3.55 per share. In a press release, Durational Capital said it was set to pay USD6.90 for every Casper share outstanding.
“We are delighted to announce this transaction with Durational Capital Management that creates immediate and substantial value for shareholders, and allows Casper to move forward on strong financial footing. In consultation with outside advisors, Casper’s Board of Directors evaluated a range of strategic and financial alternatives over several months and determined, after careful consideration, that the transaction proposed by Durational is superior to all other alternatives available. With a commitment to maximizing value for all shareholders, the Board unanimously supports the offer from Durational and recommends that shareholders approve the transaction. This agreement offers a promising opportunity to realize the highest value for our stockholders while providing Casper with much needed capital to execute on future initiatives to sustain and grow its business.”
Casper’s Co-Founder and Chief Executive Officer, Philip Krim
According to Krim, the company had been contemplating various financial opportunities, before deciding on this particular alternative. Casper’s board collectively supports the current offer from Durational and advises that shareholders accept the transaction, Krim said.
Third Quarter Loss
The company reported a third-quarter loss of USD25.3 Million, or USD0.61 a share on Monday, compared to the previous year’s loss of USD15.9 Million, or USD0.40 per share.
