Mattress Firm bought for $2.4B

Mattress Firm is being sold to Steinhoff International Holdings, a South African discount retailer, for roughly $2.4 billion.

Steinhoff will pay $64 per share, a 115 percent premium over the company's closing stock price of $29.74 on Friday, before the announcement.

"The Mattress Firm board believes that the transaction provides significant value to our stockholders through the premium to our share price and the immediate liquidity at closing, while giving Mattress Firm an ideal partner with a proven track record in the complete mattress supply chain including the retail and manufacture of mattresses," said Steve Stagner, executive chairman of Mattress Firm. "This expertise will complement our diverse selection of products provided by our valuable partners."

Steinhoff manufactures, sources and sells furniture, household goods and clothing in Europe, Africa and Australasia. Steinhoff operates more than 40 brands in 30 countries.

Mattress Firm gives it entry into the United States.

It also gives Mattress Firm access to the sourcing, manufacturing and supply chain needed to compete with the growing number of direct-to-consumer mattress makers today.

Both companies have approved the details of the merger. Mattress Firm will operate as a subsidiary of Steinhoff from its current headquarters in Houston, Texas. Stagner and Ken Murphy, president and CEO of Mattress Firm, will remain in their positions. Stagner is also joining Steinhoff's executive committee, according to a company statement.

For more:
- see this Mattress Firm press release

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