Steinhoff to buy top US mattress retailer

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File: Steinhoff International announced on Monday that it had agreed to buy Nasdaq-listed Mattress Firm for $64 per share in cash.

File: Steinhoff International announced on Monday that it had agreed to buy Nasdaq-listed Mattress Firm for $64 per share in cash.

CAPE TOWN - Steinhoff International announced on Monday that it had agreed to buy Nasdaq-listed Mattress Firm for $64 per share in cash in a deal that valued Mattress Firm at $3.8-billion including net debt.

The South African retail group said the transaction, which heralded its entry into the US, would create the world’s largest multi-brand mattress retail distribution network.

With more than 3,500 stores across 48 states, Mattress Firm has the largest geographic footprint among multi-brand mattress retailers in the US Steinhoff described itself as a leader in the European mattress market.

The price is a premium of 115 percent to Mattress Firm’s closing price of $29.74 per share on Friday.

Steinhoff chief executive Markus Jooste said the transaction would allow the company to enter the US market with an industry leading partner and a national supply chain.

He added that Steinhoff recognised the strength of Mattress Firm’s experienced and entrepreneurial management team and its proven track record.

Steve Stagner, Mattress Firm’s executive chairman, said the deal also gave Mattress Firm “an ideal partner with a proven track record”.

The transaction was expected to close by the end of the third calendar quarter.