Major Canadian sleep retailer Sleep Country has signed an agreement to purchase a 25 percent stake in Sleepout, a Toronto-based startup specializing in portable blackout curtains.
A spokesperson from Sleepout told BetaKit Sleep Country acquired the 25 percent stake for $500,000 CAD.
Launched in January, Sleepout is a direct-to-consumer business that works to help people sleep better with its Sleepout Curtain, a patented portable blackout curtain that can be installed anywhere to completely darken a room.
Co-founders Mark Coombs and Hannah Brennen said the company was born out of Coomb’s insomnia, and his discovery that total darkness was the best solution to get a restful night’s sleep.
“With Sleep Country’s support, Sleepout will be able to cover new ground by achieving larger scale and advancing our joint mission of helping North Americans sleep better,” he said.
Sleep Country’s 25 percent stake represents its first ever minority investment. According to the retailer, it expects to see this partnership build business relationships and assistance with warehousing and supply chain to support Sleepout’s business expansion “to meet rising demand.”
This is not the first time Sleep Country has taken a stake in a Canadian startup. Sleep Country acquired mattress company Endy in 2018 for $89 million.
RELATED: Endy to be acquired by Sleep Country Canada for $89 million
“Sleepout fills a major gap in the market and addresses a problem around sleep for people living all over North America, and beyond,” said Phil Besner, senior vice president, business development of Sleep Country Canada.
According to a report by Gizmodo, light during nighttime causes multiple health-related consequences such as weight gain, depression, weakened immune system, and others.
Sleepout curtains can be temporarily installed to any window using industrial-strength locking suction cups and block extra light with the help of its proprietary Sleepout Pads: a non-damaging adhesive technology designed specifically to block light bleeds.
The company claims its commitment to the environment goes beyond its use of sustainable manufacturing and ethical business practices. Sleepout purchases carbon offsets, designs products to maximize longevity, and minimize packaging. A tree is also planted for every Sleepout curtain sold through its partnership with The Eden Project.
“As a small company, we want to lead by example and prove it is possible to develop innovative solutions to everyday problems without compromising on the health of the planet,” said Brennen. “Through our journey in becoming the world’s leading portable blackout curtain we want to do good for the environment and leave it better than we found it.”
Sleepout said it’s next phase of growth includes rapidly expanding their business in the United States and Canada, launching its flagship product, and selling them at retail stores by late 2022.
Featured image from Sleepout’s Facebook page