Sheela Foam Acquires Kurlon for a Whopping Rs 3,250 Crore

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Sheela Foam Shares Surge 7% on Kurlon Acquisition News

Sheela Foam Ltd, the maker of the popular Sleepwell brand of mattresses, has announced that it will acquire its rival Kurlon Enterprise Ltd for a cash consideration of Rs 3,250 crore. The deal is expected to be concluded within a couple of months and will help Sheela Foam consolidate its position as the market leader in the passenger rolling stock segment in India.
Sheela Foam Acquires Kurlon for a Whopping Rs 3,250 Crore
Sheela Foam

Sheela Foam is a leading manufacturer of mattresses, home comfort products, furniture cushioning, and other foam-based products. The company was established in 1971 and has a pan-India presence with over 100 distributors and 5,000 dealers. The company also exports its products to over 25 countries across Asia, Africa, Australia, and Europe.

Kurlon Enterprise is the second-largest player in the mattress segment in India, with a market share of around 15-20%. The company was founded in 1962 and has a strong presence in the southern and eastern regions of India. The company offers a range of products such as coir, spring, foam, and rubberized coir mattresses, as well as pillows, cushions, sofas, and other home furnishings.

With the acquisition of Kurlon Enterprise, Sheela Foam will nearly double its market share in the organized mattress segment in India, which is estimated to be worth around Rs 10,000 crore. The combined entity will have a market share of around 35-40%, followed by Duroflex with 10-15% and Peps Industries with 5-10%.

The deal will also create cost benefits and synergies for Sheela Foam, as it will leverage the complementary strengths of both companies. Sheela Foam has a strong presence in the northern and western regions of India, while Kurlon Enterprise has a strong foothold in the southern and eastern regions. The deal will also help Sheela Foam diversify its product portfolio and cater to different customer segments and preferences.

The news of the acquisition has boosted the share price of Sheela Foam, which surged 7% to Rs 2,450 on June 28, 2023. The stock has gained over 50% in the past year, outperforming the Nifty 50 index, which has risen by around 25% in the same period.

Sheela Foam is confident that the acquisition will create value for its shareholders and customers, as it will enhance its competitive edge and growth prospects in the mattress segment. The company is also investing in research and development, innovation, and technology to offer superior products and services to its customers.

If you are interested in knowing more about Sheela Foam and its products, you can visit their website at https://www.sleepwellproducts.com/ or follow them on Twitter at @Sleepwell_India.

Disclaimer: This blog post is for informational purposes only and does not constitute any financial advice or endorsement of Sheela Foam or its products. Readers are advised to do their own research before making any investment decisions.

Sheela Foam, Kurlon Enterprise, Mattress segment, Sleepwell brand, Kurl-on brand, Market share, Acquisition deal

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