Sheela Foam to buy Kurlon stake for Rs 2,150 cr

NEW DELHI: Sheela Foam Ltd, the maker of popular mattress brand Sleepwell, on Monday said it will acquire a 94.66 per cent stake in Kurlon Enterprises Ltd for Rs 2,150 crore.

The company also said it will acquire a 35 per cent stake in online furniture firm House of Kieraya Pvt Ltd for Rs 300 crore. The company’s board at its meeting held on July 17, 2023, has approved the acquisition of Kurlon Enterprise Ltd and House of Kieraya Pvt Ltd, Sheela Foam said in a regulatory filing. “The company is acquiring 94.66 per cent of KEL’s (Kurlon Enterprises Ltd) 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 a statement, the company said the cost of acquiring 94.66 per cent in KEL is around Rs 2,035 crore. KEL deals mainly in the manufacture and marketing of foam and coir-based home comfort products across to ‘sit and sleep’ categories like mattresses, furniture cushions, pillows and coverings. “With the coming together of Kurl On, Sheela Foam will further cement its leadership position in the modern mattress market,” Sheela Foam CMD Rahul Gautam said.