Steinhoff International is buying Mattress Firm (MFRM) for $2.4 billion in the biggest ever African buyout of an American company.
The cash offer will see investors double their money overnight. South Africa-based Steinhoff is paying $64 per share for Mattress Firm. Stock in the big-box retailer, which owns Sleepy’s and Sleep Train, closed at $29.75 on Friday.
Steinhoff operates a retail network across Africa, Europe and Australasia, and wants to break into the U.S. market. Most M&A activity in Africa is centered on South Africa, where $16 billion in deals have been announced this year.
The acquisition as a way for Steinhoff to enter the U.S. market, which it says is attractive due to high disposable consumer income, Forbes reported. The deal is expected to work well with the company’s existing operations in Africa and Europe.
Mattress has more than 40 brands in 6,500 stores and employs 100,000-plus people in 30 countries, trading on the Frankfurt and Johannesburg stock exchanges.