DLA Piper Canada advised Hush Blankets on its acquisition by Sleep Country
On October 22, 2021, Canada's leading omni-channel specialty sleep retailer, Sleep Country Canada Holdings Inc. (“Sleep Country”) (TSX: ZZZ), acquired a majority share of Hush Blankets Inc. (“Hush”).
Hush is a Canadian-based, direct-to-consumer sleep retailer specializing in weighted blankets, pillows, sheets, and most recently bed-in-a-box mattresses. Founded by Lior Ohayon and Aaron Spivak (Forbes 30 Under 30 selections and winners), Hush launched its weighted blanket in 2018 and is one of Canada’s fastest-growing digital retailers. Within its first 24 months, the company initiated one of the 10 most successful Kickstarter campaigns ever and earned "Most Epic Pitch" of the 2019 Dragons’ Den season. Hush will continue to operate as an independent entity led by Ohayon and Spivak in their respective roles, with a board comprised of the senior management of Sleep Country and Hush.
Sleep Country acquired a 52% majority stake in Hush for an initial amount of $25 million. Sleep Country will acquire the residual 48% of Hush in annual 16% stake increments thereafter starting March 31, 2023.
DLA Piper (Canada) LLP acted for Hush on this transaction, with a team led by Robert Fonn and Nicole Kapos and including Kevin Fritz and Dennis Yee (tax), Matthew Demeo (employment), MacKenzie Jordan (securities and capital markets), David Spratley (IPT), Tudor B. Carsten (litigation), Catherine A. Pawluch (regulatory) and Stephen R. Morris (real estate).
"Robert and the DLA team have been a pleasure to work with — extremely responsive and great attention to detail,” said Founder, Lior Ohayon. “We felt taken care of all the way until close and couldn't be happier with our choice of lawyer. Thanks Rob!"
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