Linklaters and Ropes & Gray advise as Steinhoff strikes $2.4bn deal for mattress business

Hard-working-Article-201608080619Linklaters and Ropes & Gray have won lead mandates on Steinhoff’s $2.4bn (£1.8bn) bid for US company Mattress Firm Holding.

Linklaters is advising South African discount retailer Steinhoff, which is set to make its first move into the US market.

Mattress Firm Holding has instructed Ropes & Gray. It operates 3,500 retail stores across America under the Sleepy’s and Mattress Firm brands.

The deal, which was announced on Sunday, sees the Johannesburg-based company purchase the Houstonheadquartered bedding business for $3.8bn (£2.9bn) when including debt.

The Linklaters team is being led by New York corporate partners Scott Sonnenblick and Peter Cohen-Millstein, New York tax partner Gordon Warnke, and London banking partners Danelle Le Cren and Toby Grimstone.

The Ropes & Gray team is made up of a number of Boston partners, including: M&A partner Christopher Comeau; securities and public companies partner Patrick O’Brien; tax partner David Saltzman; and executive compensation and employee benefits partner Renata Ferrari.

The team also includes New York-based business and securities litigation partner David Hennes and London-based finance partner Matthew Cox.

The transaction is expected to close in the third quarter, the companies said.

Steinhoff already owns the European home furnishing retailer Bensons for Beds and Conforama. This deal will give the company a large US operation, which spans 48 states, and will make Steinhoff the world’s largest bedding giant.

Steinhoff turned to Linklaters and German firm Gleiss Lutz last month to advise on its $800m (£612m) acquisition of British retail conglomerate Poundland, in one of the first major M&A deals announced since Britain voted to leave the European Union.

Linklaters and South African firms Cliffe Dekker Hofmeyr and Werksmanswere advised Steinhoff last year on switching its primary listing from Johannesburg to Frankfurt.