28/Mar/2018

Capstone Headwaters Advised Purple Innovation on its sale to Global Partner Acquisition Corp.

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Capstone Headwaters advised Purple Innovation, LLC (“Purple” or the “Company), a comfort technology company known for creating the “World’s First No Pressure™ Mattress,” on its sale to Global Partner Acquisition Corp. (“GPAC”), a special purpose acquisition company. The transaction was approved at a special meeting of the Company’s stockholders held on February 2, 2018.

Purple is a leading comfort technology company which designs and manufactures products to improve how people sleep, sit, and stand. It designs and manufactures a range of products, including mattresses, pillows, and cushions using its patented Hyper-Elastic Polymer® technology. Since launching in 2016, the Company has developed multiple proprietary and innovative products and has been one of the fastest-growing, digitally-native brands in the mattress and home good categories.

Terry Pearce, Founder of Purple stated
“Bill Harrison and Shaun Kalnasy not only exceeded our expectations but did significantly more than what was expected as part of the original engagement. Purple is an unusual case with its rapid growth, high revenues, and a very short history so comparing diverse opportunities in private equity, a SPAC, and an IPO was difficult at best.  Bill and Shaun were incredibly proactive and their honest advice, commitment to Purple, and hours of dedication were extraordinary.  They made me feel comfortable while making decisions that affected hundreds of millions of dollars. They are true leaders in e-commerce and branded consumer products, and their experience and guidance were critical to successfully closing the transaction.”

The Company, which manufactures the majority of its products at its facility outside of Salt Lake City, sells through its website, eCommerce retailers, and traditional retail channels. Purple is widely recognized and known for its humorous viral videos, which have been viewed over one billion times, and are a key driver of the Company’s rapid growth.

Shaun Kalnasy, Managing Director at Capstone Headwaters commented
“It was truly a pleasure to work with Terry, Tony, and the entire Purple team. Few companies ever achieve the growth, scale, brand recognition, and cult-like following that Purple has achieved in such a short time-frame. This is a testament to not only the differentiated products the Company is building, but to the world-class marketing team that is using cutting-edge tools to develop innovative content and drive such exceptional user engagement. We are delighted to have found a partner that will support Purple’s continued growth, while accelerating the company’s goal of becoming the first direct-to-consumer mattress player in the US to go public.”

Transaction Summary
Under the terms of the merger agreement entered into by the Company, Purple, and other parties, GPAC has changed its corporate name to Purple Innovation, Inc. The Company’s common stock and warrants were listed on NASDAQ on February 5, 2018 under the symbols “PRPL” and “PRPLW”.

Pursuant to the Merger Agreement and the related transactions, GPAC’s common stock has been renamed “Class A” common stock. In addition, the Board of Directors of GPAC has been enlarged with the election of additional directors, and a new slate of officers of the Company has been appointed, including the appointment of Sam Bernards as Chief Executive Officer. Following the merger, approximately 82 percent of the Company’s voting securities are owned by a company controlled by the founders of Purple, Tony and Terry Pearce. Upon the merger, the previously trading units of GPAC, which consisted of one share of common stock and one warrant, will no longer trade as a unit, but will trade separately as stock and warrants.

About Purple Innovation
Purple is a leading comfort technology company, which designs and manufactures products to improve how people sleep, sit, and stand. It offers mattresses, cushions, pillows, and other comfort products using its proprietary Hyper-Elastic Polymer® technology. All products are focus​ed on founders Terry and Tony Pearce's vision to improve comfort. Purple continues to be a disruptor to the traditional mattress industry with its innovative products, packaging and shipping, direct-to-consumer sales, and generous trial and return policies. For more information, visit www.purple.com

About Global Partner Acquisition Corp.
Global Partner Acquisition Corp. is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. GPAC’s units began trading on The NASDAQ Capital Market on July 30, 2015 and its securities trade on NASDAQ under the ticker symbols GPAC, GPACW and GPACU. For more information, visit www.globalpartnerac.com​