Sleepwell Maker Sheela Foam Buys Kurl On For Rs 2,150 Crore

Sheela Foam Ltd. announced on Monday it would acquire a 94.66% stake in rival Kurlon Enterprise Ltd. and around 35% in House of Kieraya Pvt.

The company is acquiring 94.66% of KEL's 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 in an exchange filing.

Kurlon's home comfort products span categories such as mattresses, furniture cushions, pillows, and coverings. The acquisition will help Sheela Foam "consolidate the existing fragmented market of mattresses and foam-based products" and diversify its customer base in KEL's southern and eastern regions of India, the company said.

Sheela Foam will also pick up a 35% stake in the rental furniture service company Furlenco. The deal is valued at Rs 300 crore, subject to customary working capital and other adjustments.

Furlenco offers living, dining, and bedroom furniture rental services, as well as furniture design and relocation services.

"The acquisition will help the company enter the fast-growing branded furniture market," the Sleepwell maker said.