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Sleep Country Canada Adds Casper Canada to Its Operations

April 17, 2023  by HFBusiness Staff in Business Strategy, Industry   

Sleep Country has acquired substantially all of the assets of Casper Sleep Inc.'s Canadian operations for $20.6 million in cash at close and has invested US$20 million in five-year convertible notes which will have the option of converting into ~5% of Casper Sleep Inc.'s shares.

Sleep Country will receive a cumulative US$4.5 million marketing transition fee from Casper Sleep Inc. over the next four years and receive three-year warrants which would convert into a ~1% stake in Casper Sleep Inc. upon exercise.

"We are thrilled with the acquisition of 100% of Casper's Canadian business and to add this fantastic brand to our line-up of other leading sleep brands,” said Stewart Schaefer, president and CEO of Sleep Country.

“We look forward to a seamless transition, continuing to build the Casper brand in Canada, executing on their long-term strategic growth plan and making the newest member of our family of brands more accessible to all Canadians."

"We're delighted to close the deal today and expand our partnership with Sleep Country, one of North America's top sleep retailers. With this acquisition, we will accelerate our expertise and rapid growth in the retail omnichannel space and ensure the Casper brand continues to build its presence in the Canadian market," said Emilie Arel, CEO of Casper Sleep Inc.

Starting today, Casper Sleep Inc.'s retail and digital channels of business in Canada will be fully operated and owned by Sleep Country.

Davies Ward Philips & Vineberg LLP served as legal counsel for Sleep Country Canada, and for Casper Sleep Inc., Stikeman Elliott LLP served as legal counsel.