Steinhoff (SNH) – Bedding down more acquisitions

We quantify the increase in retail capacity that the Mattress Firm acquisition could have for SNH and find the volume uplift to be quite significant. We believe this could give SNH considerable scale and the potential to be a global leader in the bedding category.
There could be opportunity for SNH beyond the bedding category in the US market, in our view, as Mattress Firm’s exposure to furniture and accessories is rather limited.