Mattress Firm | $MFRM Stock | Firm After Buyout


Mattress Firm Holding Corp (NASDAQ: MFRM)



Shares of MFRM surged up Monday following news that Steinhoff had purchased the company. Steinhoff will pay $64 per share, a 115 percent premium to Mattress Firm’s Friday close. The price includes $1.4 billion in debt. The deal, announced on Sunday, will create the world’s largest mattress distributor and takes the $23 billion South African retailer across the Atlantic for the first time. Yahoo Finance.


CEO Comments

“This transaction will allow Steinhoff to not only enter the U.S. 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. The Mattress Firm brand and speciality retail concept are a strong complement to the Steinhoff group retail brand portfolio in the many geographies where the group operates,” Markus Jooste, CEO of Steinhoff, said in a statement Forbes.


Technical Analysis

Mattress Firm

MFRM gapped up in price today 114% to $63.74, a $34.00 increase from the previous day’s close. Looking at the chart, we see that it has not traded near this range in a year and was steadily losing value. Because of the buyout it approached, but didn’t quite reach its all-time high achieved in November of 2014. Volume today was massive at almost 8 million, compared with its average daily volume of 404,000.


Mattress Firm Holding Corp Recent Financials

On June 9, 2016 Matttress Firm announced is fiscal first quarter financial results. Net sales for the first fiscal quarter increased 49.2% over the prior year period to $839.4 million, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. The Company reported first fiscal quarter earnings (loss) per diluted share (“EPS”) on a generally accepted accounting principles (“GAAP”) basis of $(3.22), and EPS on a non-GAAP adjusted basis, excluding intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges (“Adjusted”), of $(0.17). Excluding the non-cash amortization of tradenames, Adjusted EPS excluding Tradename Amortization was $(0.10), compared with the Company’s guidance for $(0.07) to $0.00 in Q1 Mattress Firm.


Company Profile

Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the United States. It operates in two segments, Retail Operations and Franchise Operations. The company also operates an e-commerce Website. As of March 21, 2016, it operated and franchised approximately 3,500 stores across 48 states under the Mattress Firm, Sleepy’s, and Sleep Train brand names. The company was founded in 1986 and is headquartered in Houston, Texas. Mattress Firm Holding Corp. operates as a subsidiary of Mattress Holdco, Inc Yahoo Finance. According to its website, aside from an aesthetically pleasing and unobtrusive store environment, the highly trained sales professionals demonstrate exceptional product and sleep knowledge to assist the consumer in making the best bedding selection for them. Mattress Firm’s success and proven track record allows them to offer solid guarantees to further ensure customer satisfaction Mattress Firm.