Kelce will become a top shareholder with under 5% stake, company says
He will buy some shares himself and receive additional restricted stock, company says
His investment follows stake in Six Flags Entertainment
Sleep Number aims for growth under new CEO Linda Findley
By Abigail Summerville and Milana Vinn
Jan 28 (Reuters) - National Football League star Travis Kelce is taking a stake in Sleep Number SNBR.O as part of a partnership that will make him one of the mattress maker's top shareholders and a spokesman as it looks to attract new customers, the company said.
The company said the partnership, first reported by Reuters, will give Kelce a stake of under 5% in the mattress maker and will feature the Kansas City Chiefs' star tight end in its national advertising campaigns over the next three years.
Kelce is buying some of the shares on his own and receiving additional restricted stock that vests over the three years as part of the deal, the company said. It did not disclose the precise breakdown, nor the exact size or value of the stake.
Co-host of the popular podcast "New Heights," Kelce has slept on a Sleep Number bed since 2019. He has publicly endorsed the company's products since at least 2020, posting a photo of himself on social media showing him sleeping on a Sleep Number 360 smart bed.
This is the three-time Super Bowl champ's latest investment in a public company after buying shares in amusement park chain Six Flags Entertainment FUN.N last year.
Kelce's investments have carried more weight than most NFL players thanks to his engagement to singer Taylor Swift, making him a household name.
Shares of Six Flags soared 18% after it was reported that Kelce was joining activist hedge fund Jana Partners in taking a stake in the company in October.
Kelce said in a statement that he had slept on a Sleep Number bed for a number of years and becoming an investor felt like a "natural next step".
"This partnership reflects my confidence in where the company is headed and the growing opportunity around sleep,” he said.
NEW CEO LOOKING TO RETURN TO GROWTH
Sleep Number, which closed at $10.30 per share on Tuesday giving it a $235 million market capitalization, is in the midst of a turnaround under new CEO Linda Findley who started in April after spending time in the C-suites of Blue Apron and Etsy ETSY.N.
She launched a Sleep Number Shifts campaign to revamp marketing, reach new customers and return to growth. The company's sales have been declining due to consumers cutting back on big-ticket discretionary items and the competitive environment.
“Travis’ passion for and awareness of the health benefits of sleep, combined with his business acumen, will be a helpful accelerator of our work as we continue to share our story and attract new, younger consumers to the brand," Findley said in a statement.
Kelce has also invested in several private consumer companies including beer brand Garage Beer and tequila soda maker Casa Azul.
(Reporting by Abigail Summerville and Milana Vinn in New York; Editing by Dawn Kopecki and Jamie Freed)
((abigail.summerville@thomsonreuters.com))