Sheela Foam to acquire rival Kurlon in Rs 3,250 cr deal: Report

Earlier this year Sheela Foams was reportedly in advanced talks to acquire furniture rental startup Furlenco.

Sheela Foam will acquire rival Kurlon Enterprise for a cash consideration of Rs 3,250 crore, Moneycontrol reported on Wednesday, sending the Sleepwell mattress maker's shares up by 6.7 per cent.

The deal will be executed in two tranches and is expected to be concluded within a few months, a source familiar with the matter told Moneycontrol.

Sheela Foam and Kurlon, the manufacturer of Kurlon mattresses, did not immediately respond to Reuters' requests for comment.

The deal will help Sheela Foam to nearly double its market share in the mattresses segment, Moneycontrol said, taking it to 35 per cent-40 per cent from 20 per cent-25 per cent currently.

About Rs 900 crores are expected to be added to Sheela Foam's topline at the consolidated level after the deal concludes, the report said.

The company has been in talks to acquire Kurlon since last year when local media ET Now reported a deal amounting to Rs 1,977 crore.

Earlier this year, Mint reported that Sheela Foam is in advanced talks to buy furniture rental startup Furlenco.