Steinhoff International Holdings has agreed to buy South African discount retailer Mattress Firm Holding in a deal worth around R32.9 billion – $2.4 billion.
The deal will create the world's largest bedding giant, give Steinhoff international reach, and diversify its sales away from its largest market (South Africa). Interestingly, Steinhoff's largest shareholder is South Africa billionaire Christo Wiese.
Markus Jooste (pictured), Steinhoff's CEO, said in a statement:
"This transaction will allow Steinhoff to not only enter the US 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."
According to Steinhoff, it will finance the deal through a combination of bank and bridge loans. Directors at both companies have approved the takeover, which is expected to be completed by the end of the third quarter of this year.
