Tempur Sealy International Inc. has purchased Mattress Firm, a U.S. mattress retailer, from Steinhoff International Holdings NV in a cash and stock deal valued at approximately $4 billion.

The deal looks to combine two brands at a time when consumers are pulling back from pandemic-era splurges on home furnishings. The purchase will be funded by about $2.7 billion of cash and $1.3 billion in stock, according to Bloomberg News. Mattress Firm is expected to operate as a separate business unit within Tempur Sealy. The combined company will have about 3,000 retail locations globally, 71 manufacturing facilities and more than 21,000 employees. The combination is expected to drive retail operations, customer service and supply-chain management for Tempur Sealy.

JPMorgan Securities is serving as financial adviser to Tempur Sealy. Goldman Sachs, Barclays and Jefferies are financial advisers for Mattress Firm.