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A New York acquisition company is buying mattress and cushion manufacturer Purple Innovation LLC in a deal that values the rapidly growing Utah company at $1.1 billion.
Global Partner Acquisition Corp., a publicly traded company, anticipates putting up $90 million in cash that will go to Purple's current owners, with the rest of the purchase price being provided by equity in the new public company that will be created, the two companies said Thursday morning.
Purple Innovation, based in Alpine with a manufacturing plants there and at Grantsville, uses patented technology to produce mattresses, cushions, pillows and other products made from a "hyper-elastic polymer" that provides support while dissipating heat.
The Utah company experienced a 271 percent growth rate from 2016 to the first half of this year with $187 million in net revenue, the New York company said in a regulatory filing.
Purple was founded by brothers Terry and Tony Pearce, who under the deal will retain a majority shareholder position in the new public company, with Sam Bernards remaining as CEO.