Purple comes to Canada
SALT LAKE CITY, Utah – The online mattress market in Canada just got a little more crowded as Purple, which describes itself as a “comfort technology company known for creating the ‘World’s First No Pressure Mattress’” announced it will begin shipping its product line to consumers north of the 49th parallel immediately.
Canada is the U.S. e-sleep specialist’s first international expansion.
The site’s product assortment includes mattresses, pillows and cushions which will be shipped directly to the customer’s home at no extra cost. Purple’s products feature its patented Hyper-Elastic Polymer technology, which it says is designed to improve comfort.
“A good night’s sleep is a universal need and Purple is determined to meet the global demand for our quality sleep products,” Purple chief executive officer Sam Bernards said in a statement. “We’re excited to extend the availability of our products to Canada and solve the problem of uncomfortable sleep for our neighbors to the north.”
In conjunction with the launch, Purple has announced an exclusive “back-to-school” promotion for Canadian consumers. While supplies last, customers can get C$125 off a platform base when they buy a mattress and base together. Purple will also offer free shipping, as well as its product warranties, including the 100-night trial for its mattress and pillow.
Since launching last year, the company said it has seen rapid growth in the U.S., which it has attributed in large part to its revolutionary mattress composition, created using non-toxic food grade materials. Its YouTube strategy has also garnered attention, with videos drawing millions of views and reaching tens of thousands of subscribers.
The following products are available for purchase on Purple’s web site:
- The Purple bed – twin XL (C $1,199), queen (C$1,599), king (C$1,999), California king (C$1,999);
- The Purple pillow (C$169);
- The Royal Purple cushion (C $119);
- The Purple platform base – twin XL (C$399), queen (C$419), king (C$439), California king (C $439);
- The Purple sheets – twin/twin XL (C$249), full/full XL/queen (C$269), king/California king (C$289);
- The Purple mattress protector (C $109 to C$129); and,
- The Purple PowerBase – twin XL (C$2,999), queen (C$3,499), split king (C$4,699).
The company didn’t say whether their product was subject to either provincial sales tax or the Harmonised Sales Tax.
In late July, Purple announced it had signed a letter of intent (LOI) with the New York-based Global Partner Acquisition (GPAC) in a deal that would eventually see Purple become become a publicly traded company.
Under the terms of the LOI, GPAC would acquire Purple based on an enterprise value of US$1.1 billion, with GPAC paying a portion of the purchase price in cash to the current equity holders (currently anticipated to be approximately US$90 million) and with the remainder being paid in rollover equity interests in the combined public company, subject to customary adjustments.
Purple founders Terry and Tony Pearce would retain a majority shareholder position in the combined public company with Sam Bernards continuing to lead the combined company as CEO. The founders will also remain with the combined company, which they launched in January 2016 and have since then been granted 38 patents in the advanced cushioning arena.
Purple is also pursuing a multi-channel distribution strategy, including a test with Mattress Firm – the largest mattress retailer in the United States – and its parent company, Steinhoff, to prominently feature Purple’s products in select retail locations as a store-within-a-store. Mattress Firm has approximately 3,500 locations across the U.S., meaning this could be a significant opportunity to expand sales.
Mattress industry insiders in the U.S. suggest Purple is one of the strongest of the new crop of online mattress merchants operating in that country, although it is ranked behind Casper with estimated sales of about US$75 million last year.