South African conglomerate Steinhoff International has confirmed it has entered into an agreement to acquire US-based Mattress Firm in deal worth $2.4bn.

Steinhoff, which owns UK-based Benson for Beds and Harveys, submitted a $64 per share cash bid, representing a total equity value of approximately $2.4bn (£1.8bn) and an enterprise value for Mattress Firm of approximately $3.8bn (£2.9bn) including net debt.

The acquisition price is a premium of 115% to Mattress Firm’s closing price of  $29.74 per share at the close of trading on 5 August last week.

Steinhoff reported that the transaction has been unanimously approved by the board of directors of Mattress Firm and the management and supervisory boards of Steinhoff, with acquisition representing the world’s largest multi-brand mattress retail distribution network and will facilitate Steinhoff ’s entry into the US.

Markus Jooste, CEO of Steinhoff said: “The boards of Steinhoff and its management team are enthusiastic about the opportunities this transaction creates. This transaction will allow Steinhoff to not only enter the US 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.

“Steinhoff recognises the strength of Mattress Firm’s experienced and entrepreneurial management team and its proven track record of delivering growth, profitability and leadership in the US retail mattress market. We look forward to welcoming Mattress Firm employees to be part of the one of the world’s leading multi-format retailers.”

Steve Stagner, Mattress Firm executive chairman, added: “The Mattress Firm board believes that the transaction provides significant value to our stock holders through the premium to our share price and the immediate liquidity at closing, while giving Mattress Firm an ideal partner with a proven track record in the complete mattress supply chain including the retail and manufacture of mattresses.”

Houston-based Mattress Firm, which was founded in 1986, has more than 3,500 company operated and franchised stores across the US, and includes brands such as Sleepy’s and Sleep Train.