Business
Purple Innovation Announces Consolidation of Manufacturing Operations to Accelerate Growth
Actions will expedite Grid innovation and deliver cost synergies Anticipated to generate $15 to $20 million in EBITDA benefit in 2025 LEHI, Utah, Aug. 22,
About this update from Purple Innovation, Inc.
[{"type":"text","content":"Actions will expedite Grid innovation and deliver cost synergies \nAnticipated to generate $15 to $20 million in EBITDA benefit in 2025\nLEHI, Utah, Aug. 22, 2024 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\"), a comfort innovation company with the #1 Gel Grid technology in the world, today announced the consolidation of its mattress production operations into its McDonough, Georgia facility, and the corresponding closure of two manufacturing facilities in Salt Lake City and Grantsville, Utah. The closure of the Utah manufacturing facilities is expected to be completed during the first quarter of 2025 and the consolidation into the McDonough, Georgia facility is expected to be completed by December 31, 2024. \n\n \n \n \n \n \n \n\n \n\"These moves enable Purple to streamline our operations and to reinvest in technology and marketing to grow the category,\" said Rob DeMartini, CEO of Purple Innovation. \"This decision was not made lightly. Over the past year, we have driven savings through manufacturing efficiency and supply chain initiatives, and we are confident that the consolidation of our manufacturing footprint is an important step to advance our Grid innovation and build momentum with our 'Path to Premium Sleep' strategy, which will set Purple up for positive operating cash flow and market share growth over the long-term.\"\nPurple will remain headquartered in Utah with its 4 showrooms; all R&D activities will continue to be based in the Innovation Center that Purple opened in Draper, Utah last year. As part of the plan, the company expects to open a new distribution center in Utah. Purple also plans to increase capacity at its Georgia manufacturing facility. The Company also announced plans to reduce a number of positions at the corporate level.\nThese actions are expected to be completed in early 2025 and generate $15 to $20 million in EBITDA benefit on an annualized run-rate basis starting in 2025. The Company expects to incur restructuring costs of $35 to $45 million, beginning in the third quarter of 2024 through the second quarter of 2025, of which $26 to $32 million is non-cash. The Company does not expect these actions to impact full-year 2024 guidance targets.\nAbout Purple \nPurple, the leading premium mattress company with the #1 Gel Grid technology in the world, the GelFlex® Grid, thoughtf...