Casper Sells Canadian Business to Sleep Country — Retail Bum

Mattress retailer Casper has agreed to sell its Canadian business to Sleep Country for $20.6 million.

Under the terms of the deal, Sleep Country will get $4.5 million in marketing transition fees over the next three years and three-year warrants that will account for a 1% stake in Casper once they are exercised. Additionally, Sleep Country has made a $20 million investment in five-year convertible notes that would amount to roughly 5% of Casper shares.

“We are thrilled to expand upon our retail journey by partnering up with one of North America’s top sleep retailers,” said Casper CEO Emilie Arel. “Sleep Country has been a retail mattress legacy for almost three decades, and sharing best practices with this leading retailer only helps accelerate our expertise and rapid growth in the retail omnichannel space.”

Casper’s digital launch in Canada in 2014 marked the brand’s first international expansion. Four years later, the company opened six physical store locations in the country and set up its headquarters in downtown Toronto.

The company went public in February 2020 but reversed course and took its business private two years after being acquired by private equity firm Durational Capital Management, according to RetailDive. This change in strategy came along with…