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Steinhoff International Holdings NV agreed to buy Mattress Firm Holding Corp. (Nasdaq: MFRM) for about $2.4 billion, a deal that vaults the South African discount retailer into the U.S. market while creating the world’s largest bedding giant.

Steinhoff offered $64 a share in cash, more than double the Aug. 5 $29.74 closing price for Houston-based Mattress Firm. The acquisition of the largest U.S. specialty mattress retailer included net debt that raised the deal’s enterprise value to about $3.8 billion, the companies said in a statement. Directors at both companies have approved the takeover, which is expected to be completed by the end of the third quarter.

The purchase would give Steinhoff a global reach while diversifying sales away from South Africa, its largest market, where the furniture and discount apparel seller is subject to currency swings with the volatile Rand. Steinhoff said it intends to finance the deal for Mattress Firm through a combination of bank and bridge loans.

Shares of Mattress Firm had declined 52 percent in the past year as slumping demand for retail products and discounting weighed on its results. The company had a market capitalization of about $1.11 billion.

“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,” Markus Jooste, Steinhoff’s chief executive officer, said in the statement.

Mattress Firm announced Nov. 30 that it had agreed to buy rival Sleepy’s for $780 million, combining the two largest mattress sellers in the U.S. into a network of 3,500 stores and 80 distribution centers across 48 states. The deal was completed in February. Earlier in 2016, Arsenal Capital took a majority stake in Elite Foam and in 2014, Sentinel Capital acquired Hollander Sleep Products.

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