Retailer Steinhoff has signed an agreement to acquire US-based Mattress Firm for approximately $2.4bn.

The acquisition will facilitate Steinhoff’s entry into the US and represents a new investment proposition to the company.

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The company proposes to finance the acquisition through a combination of bank and bridge loans.

Steinhoff CEO Markus Jooste said: “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.

“This expertise will complement our diverse selection of products provided by our valuable partners.”

“The Mattress Firm brand and speciality retail concept are a strong complement to the Steinhoff group retail brand portfolio in the many geographies where the group operates.”

Steinhoff said that the company recognises the strength of Mattress Firm’s profitability in the US retail mattress market.

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Mattress Firm executive chairman Steve Stagner said: “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.

“This expertise will complement our diverse selection of products provided by our valuable partners.”

Under the terms of the agreement, Steinhoff’s wholly owned subsidiary will commence a cash tender offer to purchase outstanding shares of Mattress Firm common stock for $64.00 a share in cash.

The closing of the offer is subject to customary closing conditions, including regulatory clearances and a majority tender condition.

The transaction is expected to close by or around the end of the third quarter.