Mattress Firm Holding Corp. (NASDAQ: MFRM), the nation’s largest mattress retailer, recently announced the completion of its acquisition by South Africa-based Steinhoff International Holdings N.V. Steinhoff paid $64 per share in cash for Mattress Firm, which represented a premium of 115 percent over the company’s closing stock price of $29.75 on August 5, 2016. The acquisition became effective on September 16. Moving forward, Mattress Firm will operate as a subsidiary of Steinhoff. The mattress retailer’s existing management team, led by Steve Stagner, the company’s executive chairman, and Ken Murphy, president and CEO, will remain in place in order to run Mattress Firm’s day-to-day operations. MFRM’s common stock will no longer be traded on the NASDAQ stock market following the transaction.
“The transaction with Steinhoff is complete and I am delighted that Mattress Firm is now part of the Steinhoff organization,” Ken Murphy stated in a recent news release. “Steinhoff has a proven track record in the global mattress industry, and they share our vision for the growth and expansion of Mattress Firm.”
Steinhoff, which is traded on both the Frankfurt Stock Exchange and South Africa’s JSE Limited under the ticker symbol SNH, is an integrated retailer focused on the manufacture and sale of household goods and general merchandise in Europe, Africa and Australasia. Leveraging a vertically-integrated business model, the company aims to source and manufacture products at low cost before distributing them to value-conscious customers through an extensive global retail footprint that includes more than 2,321 stores in 20 countries. In total, Steinhoff sells goods under more than 40 retail brands and operates 16 manufacturing facilities.
For the 12 months ended June 30, 2016, Steinhoff reported total revenue of roughly $14.5 billion alongside an operating profit of about $1.6 billion. The company will look to bolster these results following the acquisition of Mattress Firm, which currently operates more than 3,500 stores in 48 states with 2015 pro forma sales of $3.5 billion. Popular retail brands acquired through the Mattress Firm purchase include Mattress Firm, Sleepy’s and Sleep Train. When combined with Steinhoff’s existing manufacturing and distribution capabilities, the acquisition effectively creates the world’s largest multi-brand mattress retail distribution network.
“The boards of Steinhoff and its management team are enthusiastic about the opportunities this transaction creates,” Markus Jooste, chief executive officer of Steinhoff, added in a recent news release. “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.”
For more information, visit www.SteinhoffInternational.com
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