Mergers & Acquisitions
September 13, 2022
Purple Acquisition
Purple Innovation Announces Acquisition of Intellibed
Sep 01, 2022 (PRNewswire via COMTEX) — PR Newswire
LEHI, Utah, Sept. 1, 2022
‘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. About Purple
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(R), 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 .
September 13, 2022
Purple Acquisition
Purple Innovation Announces Acquisition of Intellibed
Sep 01, 2022 (PRNewswire via COMTEX) — PR Newswire
LEHI, Utah, Sept. 1, 2022
‘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. About Purple
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(R), 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 .
September 13, 2022
Arsenal Flips Meridian Adhesives to American Securities
American Securities Acquires Meridian Adhesives Group from Arsenal Capital Partners New York, NY, September 1, 2022 – American Securities LLC (“American Securities”) and Arsenal Capital Partners (“Arsenal”) today announced that an affiliate of American Securities has acquired Meridian Adhesives Group (“Meridian” or the “Company”), in partnership with the management team and funds affiliated with Arsenal. Financial terms of the transaction were not disclosed.
Meridian is a leading producer of high-performance advanced adhesives for electronics, infrastructure, and industrial end markets. The Company sells a broad portfolio of chemistries and focuses on niche applications that require custom solutions and complex formulations. Meridian operates 25 facilities and serves over 5,000 customers in North America, Asia Pacific, and Europe. The Company is headquartered in Houston, TX and employs approximately 560 people globally.
“We are grateful for the support of Arsenal over the past four years as we established Meridian as the go-to solution provider in the industry,” said Dan Pelton, Chief Executive Officer of Meridian. “We are excited about Meridian’s next phase of growth and our new partnership with American Securities.”
“The time that we have spent evaluating and investing in companies in the adhesives space gives us immense appreciation for Meridian’s leadership positions in attractive and growing end markets and applications,” commented Scott Wolff, a Managing Director of American Securities. “We are excited to support the Company’s organic growth and M&A strategies, innovation, and continued operational excellence so that Meridian can continue to solve problems for its customers.”
“Meridian’s growth has been a result of focusing on positive long-term trends in technologies and end markets, coupled with hard work from a talented leadership team and employee base,” said Roy Seroussi, an Investment Partner of Arsenal. “We look forward to our continued partnership with the Company and American Securities as we build a leading, global adhesives company.”
Morgan Stanley & Co. LLC acted as financial advisors to American Securities and Weil, Gotshal & Manges LLP served as legal counsel. Citi and Moelis & Company LLC acted as financial advisors to Meridian and Benesch, Friedlander, Coplan & Aronoff LLP served as legal counsel with respect to the transaction.
About Meridian Adhesives Group Meridian Adhesives Group is a leading manufacturer of high-value adhesive technologies. With a broad portfolio of dynamic solutions, Meridian serves the electronics, infrastructure, and industrial (flooring, packaging, and product assembly) markets. The group’s operations are located in the Americas, EMEA and Asia, with a multitude of sales/service offices worldwide that are positioned to serve Meridian’s global customer base. For more information, visit https://meridianadhesives.com.
About American Securities LLC Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion. American Securities and its affiliates have more than $26 billion under management. For more information, visit www.american-securities.com.
About Arsenal Capital Partners Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 250 platform and add-on acquisitions, and achieved more than 30 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visit www.arsenalcapital.com.
September 13, 2022
Arsenal Flips Meridian Adhesives to American Securities
American Securities Acquires Meridian Adhesives Group from Arsenal Capital Partners New York, NY, September 1, 2022 – American Securities LLC (“American Securities”) and Arsenal Capital Partners (“Arsenal”) today announced that an affiliate of American Securities has acquired Meridian Adhesives Group (“Meridian” or the “Company”), in partnership with the management team and funds affiliated with Arsenal. Financial terms of the transaction were not disclosed.
Meridian is a leading producer of high-performance advanced adhesives for electronics, infrastructure, and industrial end markets. The Company sells a broad portfolio of chemistries and focuses on niche applications that require custom solutions and complex formulations. Meridian operates 25 facilities and serves over 5,000 customers in North America, Asia Pacific, and Europe. The Company is headquartered in Houston, TX and employs approximately 560 people globally.
“We are grateful for the support of Arsenal over the past four years as we established Meridian as the go-to solution provider in the industry,” said Dan Pelton, Chief Executive Officer of Meridian. “We are excited about Meridian’s next phase of growth and our new partnership with American Securities.”
“The time that we have spent evaluating and investing in companies in the adhesives space gives us immense appreciation for Meridian’s leadership positions in attractive and growing end markets and applications,” commented Scott Wolff, a Managing Director of American Securities. “We are excited to support the Company’s organic growth and M&A strategies, innovation, and continued operational excellence so that Meridian can continue to solve problems for its customers.”
“Meridian’s growth has been a result of focusing on positive long-term trends in technologies and end markets, coupled with hard work from a talented leadership team and employee base,” said Roy Seroussi, an Investment Partner of Arsenal. “We look forward to our continued partnership with the Company and American Securities as we build a leading, global adhesives company.”
Morgan Stanley & Co. LLC acted as financial advisors to American Securities and Weil, Gotshal & Manges LLP served as legal counsel. Citi and Moelis & Company LLC acted as financial advisors to Meridian and Benesch, Friedlander, Coplan & Aronoff LLP served as legal counsel with respect to the transaction.
About Meridian Adhesives Group Meridian Adhesives Group is a leading manufacturer of high-value adhesive technologies. With a broad portfolio of dynamic solutions, Meridian serves the electronics, infrastructure, and industrial (flooring, packaging, and product assembly) markets. The group’s operations are located in the Americas, EMEA and Asia, with a multitude of sales/service offices worldwide that are positioned to serve Meridian’s global customer base. For more information, visit https://meridianadhesives.com.
About American Securities LLC Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion. American Securities and its affiliates have more than $26 billion under management. For more information, visit www.american-securities.com.
About Arsenal Capital Partners Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 250 platform and add-on acquisitions, and achieved more than 30 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visit www.arsenalcapital.com.
September 6, 2022
Foam Fabrication Rollup Started
Tecum stakes foam fabricator in Derry
By Patty Tascarella – Senior Reporter, Pittsburgh Business Times Sep 6, 2022
One of Pittsburgh’s biggest private equity firms has invested in a 39-year-old firm that fabricates custom foam products for multiple industries.
Tecum Capital of Wexford teamed with Valley Ridge Investment Partners to acquire the former Keystone Foam Corp., based in Derry. Tecum and Valley Ridge partnered with Centerfield Capital Partners and Petra Capital Partners. Financial terms were not disclosed but Tecum said its investment was in the middle of its target range of $8 million to $25 million.
The investors’ stake augments the Quinn family, Keystone’s founders and senior management team, in pursuing strategic growth opportunities.
Now known as Keystone Foam PA LLC, the company does not disclose sales. It employs 120 and is led by CEO Brian Quinn and COO Gerald “Jeep” Quinn, sons of the founder. The new money is growth capital for expansion to meet customer demand and to increase product offerings. Keystone’s customized foam solutions serve industry sectors including medical, packaging and furniture. It uses conventional polyurethane, polyethylene, viscoelastic foams, latex and other components
“The infusion of capital will allow us to continue our family’s focus of re-investment into our valued people, our equipment and facilities,” Jeep Quinn said in a prepared statement. “With our third generation of Quinn family members entering the business in leadership roles, the investment of capital creates a wonderful opportunity to build upon our heritage here in western Pennsylvania.”
There are opportunities for add-ons, Stephen Gurgovits Jr., Tecum managing partner, said.
“But for now, there is a nice organic growth opportunity,” he said.
The deal was the seventh platform investment out of Tecum’s $305 million SBIC fund and marked its second local deal. In February, Tecum led a syndicate of investors buying Automotive Systems Warehouse LLC, based in Hampton Township, in an eight-figure transaction.
But it also did transactions in the second half of 2021 from its prior fund, investing in JD Palatine LLC in Wexford and in DelGrosso Foods, near Altoona.
”We always prefer deals closer to home, but I believe our successful track record of working directly with family/founder owned businesses is a primary reason we get local opportunities,” Gurgovits said.
Tecum expects to finish its first full year of operations for the newest SBIC fund, its third, with close to $100 million invested. SBIC, short for Small Business Investment Company, means the U.S. Small Business Administration is matching the money raised up to the SBA’s cap of $175 million. Some 21 banks are investors in the fund.
“We are excited about the excellent start and pace of investment in Fund III so far,” Gurgovits said.
Tecum Capital Partners is Pittsburgh’s fourth-largest private equity firm according to capital under management, which is $750 million. The $28 million it invested in 2021 in local companies was the highest disclosed amount of any private equity or venture capital firm based in the 10-county Pittsburgh metro, according to The List published by the Business Times on April 22. Separate from the SBIC fund, Tecum is also doing deals with family offices.
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Tecum’s team for the Keystone deal consisted of Matt Harnett, Dave Bonvenuto, Paul Oris and Carter Henderson. Clearfield-based CNB Bank provided senior debt financing. McGuireWoods and Jones Day provided legal services to the investor group and CohnReznick LLP provided accounting, tax, and quality of earnings advice. Dinan Capital Advisors represented Keystone as its exclusive financial advisor and Williams Coulson provided legal counsel.
https://www.bizjournals.com/pittsburgh/news/2022/09/06/tecum-stakes-foam-firm-derry.html
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