After All Those Podcast Ads, Casper Sells to a Private Equity Firm

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 their products directly to consumers.

The company plans to expand direct-to-consumer (D2C) sales from its primary business of selling boxed mattresses in February 2020, according to its S-1 prospectus, which will "promote an ideal sleeping environment" in February 2020. gives". became public. Hui. That list of products included sleep tracking devices, bedside clocks, sleep services like digital apps and counseling, and even sleep supplements. But besides the things that go on and on mattresses—like sheets and pillows—Casper's most notable product to date is its Glow Bedside Lamp.

Casper began adding retail locations in 2018 and sold its products at retailers such as 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, Emily Errell, has been appointed CEO, taking over from Casper co-founder Philip Krim.

Casper's board of directors unanimously approved the acquisition, which is awaiting approval by Casper stockholders.