Kryo, the company behind the ChiliSleep brand, announced a merger with sleep technology company Ebb Therapeutics and raised $37 million in new funding led by Ebb’s biggest investor KKR.
WHO: Founded in 2007 by Tara and Todd Youngblood, Kryo is the parent company of ChiliSleep, an innovator of temperature-regulated sleep solutions engineered to optimize health and wellness through enhanced quality sleep and patented technology.
Ebb Therapeutics is a privately held sleep tech company whose groundbreaking brain-imaging studies on patients with sleeplessness led to the creation of a clinically validated sleep device. With more than a century of collective experience in the sleep space, Ebb is on a mission to tangibly improve sleep, by harnessing the unprecedented and scientific power of cooling.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit, and real assets, with strategic partners that manage hedge funds. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business.
WHY: The two companies have a complementary approach and the merger will create a strong portfolio of combined patents.
IN THEIR OWN WORDS: “We are thrilled to keep improving how the world sleeps. This combination is validation that the world is ready to take a fresh look at sleep and incorporate clinically researched solutions into everyday life. This investment and our merger with Ebb will help to accelerate growth into new spaces for consumers, meeting them where they are in the journey, with solutions for the bedroom, and on-the-go resources to help coach them along the way,” said Tara Youngblood, ChiliSleep CEO and co-founder.
“The steadfast mission of Ebb Therapeutics has been, from the start and above all, to improve the lives of as many people as possible through better sleep,” said Eduard Röösli, Ebb President and CEO. “We are honored to be merging with ChiliSleep, a company whose goals truly match up with Ebb’s; with their far-reaching capabilities and respect for science, I am confident that they will be able to maximize our groundbreaking, proven technology and help even more people live happier, healthier lives.”
“Insomnia and sleep-related issues are unfortunately on the rise, but fortunately so are effective treatments to address them. We are thrilled to support the merger of ChiliSleep and Ebb to bring these innovations to the market and help solve an unmet need for those who need improved sleep,” said Ali Satvat, Global Head of KKR Health Care Strategic Growth and Co-Head of Health Care within KKR’s North America Private Equity platform.
- Kryo, the company behind the ChiliSleep brand, announced a merger with sleep technology company Ebb Therapeutics and raised $37 million in new funding led by Ebb’s biggest investor KKR.
- For KKR, the investment is being funded through the firm’s Health Care Strategic Growth Fund, which is focused on investing in high-growth healthcare-related companies for which KKR can be a unique partner in helping reach scale.
- The two businesses have “an integral methodology” and that merger will solidify an arrangement of joined patents.
- Youngblood said that moving forward, the company will be led by Kryo management, but she declined to comment further on whether the Ebb team will be part of the merger.
- The company will continue to sell ChiliSleep products while “the Ebb product line and Ebb brand will probably go away” according to Youngblood.
- The plan is to launch a new software platform called Sleep.me in May, which will combine sleep-related community, content, and coaching, with free and paid offerings.
- ChiliSleep has a medical advisory board that includes Dr. Michael Grandner of the University of Arizona, Dr. Chris Winter, and Dr. Kelly Starrett.
Photo: Elisabeth Lies via Unsplash