Steinhoff moving into the USA

There was an FT article (that Bright alerted us to) over the weekend, indicating that Steinhoff were looking to make a go for US retailer - Steinhoff targets US with $3.8bn deal for Mattress Firm. Subscription only, sorry, that FT. The official release from Mattress Firm is here - Mattress Firm To Be Acquired by Steinhoff International for $64.00 Per Share in Cash. They continue to "bed" down deal after deal. They are looking to get into bed with majors across the globe. Steinhoff continue to acquire where they see value. Whilst this seems an excessive price (and it is), the stock is trading today at the same price as in January 2012. The premium is where the stock traded at in October 2014, same price. Since then the going has been tough.

Who is Mattress Firm? In the Fact Sheet about the group, there is a projection, and perhaps that is why you can see Steinhoff wanting to pay this premium:



Mattress Firm, firm offer, firm plans, there is no Hoff like the Steinhoff. As the release says: "The merger agreement, which has been unanimously approved by the Mattress Firm board of directors and the management and supervisory boards of Steinhoff, will create the world's largest multi-brand mattress retail distribution network." Wow. Not bad for some humble beginnings down at the bottom end of Africa. Steinhoff now operate in 30 countries with 40 brands. And are not sitting still any time soon. We watch with more than a little interest, this is becoming a more and more important holding for our clients.