Sheela Foam to acquire 94.6% stake in Kurlon for Rs 2,150 cr, 35% stake in Furlenco for Rs 300 cr

Mattress maker Sheela Foam Ltd on Monday said it would acquire 94.66% stake in rival Kurlon for Rs 2,150 crore, as it eyes a bigger share in India's mattress market.

Sheela Foam also said it will buy 35% stake in House of Kieraya, the parent firm of Furlenco, which provides furniture rental services for homes.

Ghaziabad-based Sheela Foam said in a stock exchange filing that it expects to complete the transaction by November 30, 2023.

Shares of Sheela Foam, which makes the 'Sleepwell' brand of mattresses, had jumped about 6% to Rs 1,186 after a news website reported the deal earlier on Monday. They are still down about 7% since talks were first reported late in December.

Kurlon has over 50 warehouses and 12 manufacturing facilities across five Indian states, according to its latest annual report.

Kurlon's sales rose 5.4% to Rs 809 crore in fiscal 2022. Audited figures for Kurlon's fiscal 2023 were not available yet, Sheela Foam said.