South African retailer Steinhoff International Holdings NV (SNHG.DE) will buy Mattress Firm Holding Corp (MFRM.O), the largest specialty bedding retailer in the United States, for $3.8 billion which includes debt, both companies said on Sunday.

Steinhoff said it will pay $64 per share, a premium of about 115 percent to Mattress Firm’s Friday close in a deal that will create the world’s largest mattress retail distribution company. The boards of both firms have approved the deal, the companies said in a statement.

The deal is subject to completion of a successful tender offer for Mattress Firm’s shares. The transaction is expected to close in the third quarter of 2016, the companies said.

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