Steinhoff - comment

Tempus Sealy have agreed to acquire all outstanding shares in Mattress Firm at a valuation of $4bn, almost precisely the value in our model (sheer luck). The consideration will be $2.7m in cash - gross of debt and $1.3bn in Tempur Sealy shares. The transaction, which is expected to close only in H224, has been approved by the Tempur Sealy board and appears to have no further hurdles to clear from the respective shareholders, but needs fulfilled conditions precedent and to receive anti-trust clearance from the Federal Trade Commission. Depending on debt levels then, we estimate that on a net basis, Steinhoff will receive consideration 50% in cash and 50% in (= 15% of) Tempur Sealy shares.