#United States #Lehi #Purple Innovation #GelFlex Grid #NASDAQ PRPL

Purple Innovation Initiates Strategic Review

Purple Innovation, Inc. (NASDAQ: PRPL), widely recognized for pioneering the world’s first No Pressure™ mattress, is embarking on an important strategic review. The company's board of directors has initiated this process following expressions of interest from various parties, indicating that the company is positioned attractively within the premium mattress market. This initiative aims to explore various pathways to enhance shareholder value, which might include options such as a sale, merger, or other significant financial transactions.

Formation of a Special Committee

To navigate this pivotal process, the board has established a special committee consisting of independent directors, including Gary T. DiCamillo (Chair), D. Scott Peterson, and Claudia Hollingsworth. Mr. DiCamillo expressed the board’s commitment to exploring all credible avenues to maximize shareholder value. He emphasized that the decision to launch this formal review stems from a strong position, highlighted by Purple’s return to positive adjusted EBITDA and cash flow in the fourth quarter of 2024.

Positive Financial Position

Purple has not only regained profitability but has also expanded its credit facility, significantly bolstering its financial flexibility. This enhanced position plays a critical role as the board evaluates the available strategic alternatives. The company acknowledges the importance of this review for all stakeholders, including its customers and wholesale partners as it seeks to maintain its focus on executing its Path to Premium strategy.

No Set Timeline for Conclusion

As it stands, there is no predetermined timeline for the completion of this review, nor have any specific decisions been made regarding potential strategic options. Purple Innovation intends to maintain discretion regarding the process and will only provide updates when further disclosures are merited.

Retention of Advisors

To assist in this comprehensive evaluation, Purple has retained Jefferies LLC as a financial advisor. Their expertise will be pivotal in navigating the strategic options available to the company, ensuring that all potential avenues are thoroughly assessed.

Financial Results

In conjunction with this announcement, Purple has also disclosed its financial results for the fourth quarter and full year ending December 31, 2024. Notably, the company reported an increase in its existing term loan by $19 million, raising the total commitment to $80 million. This financial backing will provide the essential resources needed to enhance operational capabilities as the company moves forward.

About Purple Innovation

Purple stands as a leader in the premium mattress sector, boasting the #1 Gel Grid technology globally, known as the GelFlex® Grid. This proprietary technology is engineered to promote restful sleep by adapting to the movements of users while balancing temperature and relieving pressure points. As a result, Purple’s products—including mattresses, pillows, and accessories—are designed to alleviate discomfort and enhance sleep quality, thus succinctly capturing their mission: Sleep Better, Live Purple.

Conclusion

With a proactive approach to evaluating its strategic options, Purple Innovation is clearly focused on ensuring that it not only meets but exceeds the expectations of its stakeholders. As the company embarks on this critical review, it is well-positioned to explore opportunities that could lead to a more advantageous future for the organization and its shareholders.