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Analysts stunned by 115% premium in Mattress Firm takeover bid

News that a family-owned South African company has agreed to acquire the biggest specialty mattress retailer in the U.S. shocked some analysts with the deal’s size and cost.

Steinhoff International Holdings NV SNH, +0.75% a furniture seller based near Cape Town, announced Sunday that it was buying Houston, Texas-based Mattress Firm Holding Corp. MFRM, +0.01% the owner of Sleepy’s, in a $2.4 billion deal that carries a stunning 115% premium.

“To say we were surprised by this news would be an understatement,” Stifel analysts summed up their reaction in a Monday note.

Steinhoff is paying $64 a share in cash, compared with Mattress Firm’s Friday close of $29.74, in a deal that gives the company its first foothold in the U.S.

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