Breaking Records: Sheela Foam acquires Kurl-on & Furlenco Furniture for a whopping Rs 2,035 crore; stock gains over 10 per cent.

Breaking Records: Sheela Foam acquires Kurl-on & Furlenco Furniture for a whopping Rs 2,035 crore; stock gains over 10 per cent.

Praveenkumar Yadav
/ Categories: Trending, Mindshare

Sheela Foam will now command a combined market share of around 21 per cent in the modern mattress market in India.

Sheela Foam Limited has acquired a controlling stake in Kurlon Enterprises Limited and a stake in Furlenco Furniture. Sheela Foam is acquiring 94.66 per cent shareholding in Kurlon Enterprises Limited at an equity valuation of Rs 2150 crore with the cost of acquiring 94.66 per cent around Rs. 2035 crore.

Sheela Foam is also investing in 35 per cent shareholding in HOK-Furlenco for an equity valuation of Rs. 857.14 crores with the cost of investing in a 35 per cent stake being Rs. 300 crores.

The acquisition gives Sheela Foam an undisputed leadership across major product categories with its flagship brand Sleepwell’s strength in foam and acquired brand Kurl-on’s strength in rubberized coir wherein both these companies are leaders in their respective product segments. Sheela Foam will now command a combined market share of around 21 per cent in the modern mattress market in India.

Sheela Foam is the leader in northern and western India, whereas KEL is having a higher market share in the southern and eastern regions of India. Kurlon Enterprises Ltd.’s acquisition will help Sheela Foam to diversify its customer base and extend to a pan-India footprint.

Today, the shares of Sheela Foam opened at Rs 1300.10, with a high and low of Rs 1363.55 and Rs 1240.20. The stock closed trading at Rs 1236.05, up by 4.04 per cent over its previous close of Rs 1188.10. 

Disclaimer: The article is for informational purposes only and not investment advice.

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