Mattress Firm to be Acquired by Steinhoff International in $2.4 Billion Deal
Ropes & Gray represented Mattress Firm Holding Corp. in connection with its proposed acquisition by Steinhoff International Holdings N.V. for $64 per share. This represents a total equity value of approximately $2.4 billion and an enterprise value for Mattress Firm of approximately $3.8 billion, including net debt.
Founded in 1986, Mattress Firm has more than 3,500 company-operated and franchised stores across 48 states, the largest geographic footprint in the U.S. among multi-brand mattress retailers. It offers a broad selection of both traditional and specialty mattresses, bedding accessories and other related products.
Headquartered in South Africa, Steinhoff is an integrated retailer that manufactures, sources and sells furniture, household goods and clothing in Europe, Africa and Australasia. It operates more than 40 brands in 30 countries.
The deal, announced Aug. 7, is expected to close by or around the end of the third quarter, subject to regulatory approvals and other closing conditions. Following completion, Mattress Firm will operate as a subsidiary of Steinhoff from Mattress Firm’s current headquarters in Houston, Texas.
The Ropes & Gray team advising Mattress Firm included mergers & acquisitions partner Christopher Comeau (Boston); securities & public companies partner Patrick O’Brien (Boston); tax partner David Saltzman (Boston); executive compensation & employee benefits partner Renata Ferrari (Boston); business & securities litigation partner David Hennes (New York); business & securities litigation counsel Martin Crisp (New York); and securities & public companies associate Thomas Danielski (Boston).