New York-based Global Partner Acquisition Corp. has completed its “reverse merger” with online bed brand Purple and taken the company public.
As a result of the deal, the company now has become a wholly owned subsidiary of GPAC, which has changed its corporate name to Purple Innovation Inc. As of Feb. 5, Purple’s common stock and warrants were being listed on the Nasdaq Capital Market under the symbols “PRPL” and “PRPLW.” Approximately 82% of the company’s voting securities are owned by a company controlled by the founders of Purple, Tony and Terry Pearce. Shares in GPAC, a special purpose acquisition company, began trading on Nasdaq on July 30, 2015.
“We are beyond excited to team up with GPAC and become the first direct-to-consumer mattress player to go public in the U.S.,” said Purple Innovation Chief Executive Officer Sam Bernards, part of a new slate of officers and additional directors that has been appointed as part of the merger.
Based in Alpine, Utah, Purple designs and manufactures products to improve how people sleep, sit and stand. It offers mattresses, cushions, pillows and other comfort products using its proprietary Hyper-Elastic Polymer support technology.
“We believe our partnership with GPAC and entry into the public markets will allow us greater financial flexibility to take advantage of the massive opportunity that lies before us—including continued direct-to-consumer penetration, product innovations and category extensions, brick-and-mortar partnerships, and expansion beyond the U.S.,” Terry Pearce said.
Deutsche Bank Securities, Piper Jaffray Companies and Raymond James & Associates acted as financial and capital markets advisers to GPAC. Capstone Headwaters LLC served as financial adviser to Purple. Ellenoff Grossman & Schole LLP acted as legal adviser to GPAC, and Dorsey & Whitney LLP acted as legal adviser to Purple.