'The Power of Gel Grid Expands'
The innovation and marketing power of Purple meets the luxury offering of Intellibed to bring retailers and wholesalers higher margin business and increased revenues by offering a complete range of beds for every comfort profile at every price point. The deal will unite Purple Innovations' IP under the Purple brand and solidify its leadership of the Gel Grid category it created, taking advantage of increased consumer interest in Gel Grid technology, the best real innovation in sleep technology since memory foam.
LEHI, Utah, Sept. 1, 2022 /PRNewswire/ -- Today, Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), the world's leader in Gel Grid technology mattresses, announced the acquisition of Intellibed, a leading sleep health and wellness company. The acquisition will naturally extend Purple's premium mattress range into the luxury category and harness the true power of Gel Grid technology under one brand.
In a recent study, Purple was the only publicly traded brand to see an increase in consumer interest year-over-year.
"Intellibed is an excellent fit for Purple," said Rob DeMartini, Chief Executive Officer of Purple. "Intellibed has licensed certain aspects of Purple's gel technologies for many years; therefore, this acquisition allows us to consolidate our IP under one roof and truly capitalize on the increased consumer interest and demand for Gel Grid technology. Additionally, Intellibed's premium market position allows Purple to accelerate its product development schedule by several years and immediately address the more luxury, higher-margin segment of the sleep and wellness industry. We are excited about the combined potential of our two highly talented teams."
In a recent consumer study by Keybanc, Purple was the only publicly traded brand to see an increase in consumer interest year-over-year. The study also showed that Gel Grid technology had the highest conversion potential amongst consumers who are increasingly moving away from coils. (KBCM Consumer Survey, July 2022).
Under the terms of the acquisition, Purple will fold the Intellibed family of brands into a luxury Purple product line, tapping Purple's significant brand power and creating a product range from premium mattresses starting at the $1,399 price point, up to the luxury prices over $7,000 per mattress. This means a wider range of choice for consumers, greater market presence for the brand, and higher margins and more revenue for the trade. The acquisition solidifies Purple Innovations' leadership of the Gel Grid category and accelerates the category's already rapid growth.
Purple will retain Intellibed employees and integrate operations where it improves customer and consumer experience, drives efficiencies in manufacturing and distribution, enables growth, and captures the benefits of scale.
"Intellibed is joining forces with one of the most respected sleep innovators in the industry. This merger provides Intellibed with a great opportunity to reach a much broader consumer audience through Purple's larger, more diversified wholesale distribution network and growing footprint of company-owned showrooms. Additionally, we look forward to benefitting from the marketing prowess that has made Purple the fastest-growing premium sleep brand. We're so pleased to align with a company that shares our vision for delivering the health benefits that our proven better-sleep products provide" said Colin House, CEO of Intellibed.
Purple's new luxury line is expected to debut early next year, with the brand supporting and amplifying Intellibed sales during the transition.
Purple is the creator of and world's leader in Gel Grid technology, the most innovative advancement in mattresses since the introduction of memory foam. Purple's marketing engine has made the company a household name in premium mattresses to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded better-sleep products, including mattresses, pillows, cushions, bed frames, sheets and more. Our products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors' products. We market and sell our products through our direct-to-consumer channels, Purple.com and Purple Showrooms, and through retail partners. For more information on Purple, visit purple.com .
Michele Anderson, email@example.com
SOURCE Purple Innovation, Inc.