Casper to offload Canadian business for $20.6 million sale
In a significant move, Casper Sleep Inc. has agreed to sell its Canadian operations to Canadian retailer Sleep Country for $20.6 million. This marks a strategic shift for Casper, which entered the Canadian market in late 2014 through its e-commerce website.
Emilie Arel, the new CEO of Casper, expressed her excitement about the partnership with Sleep Country, a top sleep retailer in North America. Under Arel's leadership, Casper has changed its approach to growth, focusing on becoming a more profitable mattress retailer rather than a lifestyle brand.
Casper made its name as a disruptor in the mattress industry, initially launching as a direct-to-consumer brand. However, over the years, it has expanded its wholesale presence with partners such as Mattress Warehouse, Nordstrom, and Bed Bath & Beyond.
Sleep Country, a retail mattress legacy for almost 3 decades, will gain Casper's physical presence in Canada. Casper currently operates six stores in the country, and the partnership is expected to accelerate Sleep Country's expertise and rapid growth in the retail omnichannel space.
The deal includes a $4.5 million marketing transition fee, which Sleep Country will receive over the next three years. In addition, Sleep Country will get three-year warrants that could convert into a roughly 1% stake in Casper once exercised.
Casper first expanded its product line beyond mattresses in 2015, introducing pillows and sheets, followed by dog beds in 2016. By 2025, the brand was planning to open more stores in Canada, reflecting ongoing expansion. However, no explicit information was found regarding a subsequent sale of Casper’s Canadian operations.
This sale comes after Casper went public in February 2020 but later announced it would go private again after being acquired by private equity firm Durational Capital Management. Meanwhile, co-founder Philip Krim stepped down from the CEO position in the same year.
Sleep Country operates 290 corporate-owned stores and 20 warehouses across Canada, providing a strong foundation for Casper's Canadian operations. Arel stated that Casper is no longer in the business of not making money, signaling a focus on profitability and sustainability moving forward.
[1] Information on Casper's expansion and potential sale of Canadian operations was gathered from various sources, but no direct mention of a sale was found in the provided data. If such a sale occurred, it is not documented in the retrieved data.
- Emilie Arel, the new CEO of Casper, is focusing on making Casper a more profitable mattress retailer, shifting away from its lifestyle brand image.
- The sale of Casper's Canadian operations to Sleep Country will accelerate the latter's expertise and growth in the retail omnichannel space, as Sleep Country gains Casper's physical presence in Canada.
- The deal between Casper and Sleep Country includes a marketing transition fee and three-year warrants that could give Sleep Country a 1% stake in Casper, once exercised.
- The sale of Casper's Canadian operations marks a significant move in Casper's strategy, as the company aims to focus on profitability and sustainability moving forward, emphasizing its financial and technological aspects.
