From Home Furnishing Business
Report: Target Offered to Buy Casper for $1 Billion
Target (NYSE: TGT) offered to buy online mattress powerhouse Casper for $1 billion, but will likely wind up as the lead investor in a new round of funding for the white-hot startup in the next few weeks, according to a report on the technology website Recode.
Sources told Recode that Target and Casper “held serious acquisition discussions” during the past several months, but couldn’t reach a deal. Casper was in the midst of another round of fund-raising at the time, and Target eventually agreed to become a minority investor in Casper, the sources said.
Those talks were apparently taking place while Target was preparing to launch a line of Casper products in select stores and on its website.
Representatives of Target and Casper wouldn’t comment on the Recode story, but Target did announce the Casper product launch last week.
The retailer said Casper’s well-known bed-in-a-box foam mattresses will be sold on its website, while a Casper mattress topper and lounger made exclusively for Target will be sold at select Target stores and on the website.
In addition, Casper pillows and sheets will be sold at select stores and on the website.
The products will be available beginning June 18.
“At Target, we strive to bring guests amazing new products and exciting partnerships, says Jill Sando, Target’s senior vice president of merchandising, home. “We love Casper’s brand and innovative products — and we really love the idea of giving our guests a simple way to get a better night’s sleep, with everything they need in one convenient place.”
Three-year-old Casper pioneered the bed-in-a-box movement and has developed something of a cult following. According to the Recode story, the company had sales of $200 million in 2016, which was only its second full year in business.
Click here to read the Recode story. And click here to read Target’s announcement about carrying Casper products.