Sheela Foam to acquire 95% stake in Kurlon Enterprises for Rs 2,035 crore
Sheela Foam Ltd, the maker of mattress brand Sleepwell, on Monday said it will acquire a 94.66 per cent stake in Kurlon Enterprises Ltd for Rs 2,035 crore.
The company’s board at its meeting held on July 17, 2023, has approved the acquisition of Kurlon Enterprise Ltd and House of Kieraya Pvt Ltd, Sheela Foam said in a regulatory filing.
“The company is acquiring 94.66 per cent of KEL’s (Kurlon Enterprises Ltd ) share capital at an equity valuation of Rs 2,150 crore, subject to customary adjustments for net working capital, debt and surplus cash, if any,” it said. It will also help diversify the customer base as the company is the leader in northern and western India whereas KEL has strengths in southern and eastern regions of India. This acquisition will help in extending a pan-India footprint, it added.
“The Kurlon deal gives Sheela Foam an undisputed leadership across major product categories with its flagship brand Sleepwell’s strength in foam, and acquired brand Kurl-on’s strength in rubberised coir; wherein both these companies are leaders in their respective product segments,” Sheela Foam said, adding it would now command a combined market share of around 21 per cent in the modern mattress market in India.
KEL had a turnover of Rs 767.25 crore in FY2020-21 and Rs 808.80 crore in FY 2021-22.
