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.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.