Steinhoff acquires US bed retailer, Mattress Firm

Steinhoff International Holdings NV has confirmed it is to acquire Houston-based Mattress Firm Holding Corp. for approximately $2.4 billion.

Steinhoff offered $64 in cash for each share and the deal will be financed through a combination of bank and bridge loans. the takeover has been approved by both companies. It is expected to complete by the end of September.

The acquisition takes the South African retailer into the US market for the first time, and will create the world’s largest bedding company.

Steinhoff currently operates 2,300 stores. Last month it confirmed plans to buy UK discount retailer Poundland Group Plc for a cost of £597 million.

Markus Jooste, Steinhoff’s chief executive officer, said:

“This transaction will allow Steinhoff to not only enter the U.S. market with an industry leading partner and a national supply chain, but it will also expand Steinhoff’s global market reach in the core product category of mattresses,”

In November 2015, Mattress Firm announced that it was to acquire a rival retailer - Sleepy’s – at a cost of $780 million.  The two retailers were the largest mattress sellers in the US and the combined companies operate a network of 3,500 stores and 80 distribution centres, operating in 48 states. The deal was completed in February.

Learn more about the acquisition in this analyst presentation. 

Source : Insight DIY

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