Sheela Foam to buy Kurlon for Rs 2,000 cr, says report

Bengaluru, December 28

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Mattress maker Sheela Foam Ltd will soon acquire competitor Kurlon for Rs 2,000 crore ($241.29 million), a news channel reported on Wednesday, citing sources.

Should the deal go through, Sheela Foam could command a market share of 35-40%, a news website had reported last month, quoting a person familiar with the planned deal.

Mattress market pegged at Rs 17,500 cr

• If the deal goes through, Sheela Foam, which sells the ‘Sleepwell’ brand of mattresses, could command a market share of 35-40%
• Sheela Foam and Kurlon did not immediately respond to request for comment
• Sheela Foam is the only listed mattress maker
• ICICI Securities has pegged India’s modern mattresses sector at Rs 17,500 crore

Sheela Foam and Kurlon did not immediately respond to request for comment. Sheela Foam, which sells the ‘Sleepwell’ brand of mattresses, is the only listed mattress maker in the country.

The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India’s modern mattresses sector at Rs 17,500 crore.

Sheela Foam shares rose as much as 5% to Rs 1,338 following the report.

News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the report had said. It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.

Kurlon’s annual consolidated net profit has declined from Rs 760.9 million in fiscal year 2020 to Rs 179.7 million in fiscal year 2022.

Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across the country. — Reuters