South African-based multinational retail giant Steinhoff International Holdings has agreed to buy North America’s largest mattress retailer for US$2.4 billion.

The deal gives Steinhoff instant market leadership in a retail category in its first foray into the US and creates the world’s largest bedding retailer.

Early this year, Mattress Firm completed the $780 million acquisition of America’s second largest mattress retailer Sleepy’s, creating a 3500-strong store network and 80 distribution centers spanning 48 states.

“This transaction will allow Steinhoff to not only enter the US 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,” said Steinhoff CEO Markus Jooste in a statement.

Last month, the South African company revealed it was buying UK discount chain Poundland for US$794 million.

The US deal should be completed by the end of the third quarter.