Casper Sleep is being acquired by private equity firm Durational Capital Management, which will take the boxed mattress company private, the companies announced Monday. The deal is expected to close in the first quarter of 2022.
Founded in 2014, Casper was one of a handful of companies whose ads were ubiquitous on podcasts and that sold its products directly to consumers.
The company went public in February 2020, with plans to expand from its primary business of direct-to-consumer (D2C) sales of boxed mattresses into products that “promote the ideal ambience for sleep,” according to its S-1 prospectus. That list of products included sleep tracking devices, bedside clocks, sleep services like digital apps and counseling, and even sleep supplements. But besides mattresses and things that go on mattresses — like sheets and pillows — the most notable product Casper has produced to date is its Glow bedside lamp.
Casper began adding retail locations in 2018 and sold its products at retailers like Target and Mattress Warehouse, but struggled to turn a profit in the increasingly crowded direct-to-consumer (D2C) mattress market.
On Monday, Casper reported that it lost $25.3 million in its third quarter, compared to a loss of $15.9 million in the year-ago quarter. The company also announced that its president and chief commercial officer Emilie Arel has been appointed CEO, taking over from Casper co-founder Philip Krim.
Casper’s board of directors unanimously approved the acquisition, which awaits approval by Casper stockholders.