India's Sheela Foam to buy mattress maker Kurlon for $262 mln (updated)

Sheela Foam

17/07/2023 13:35

(Adds background and deal details in paragraphs 2-5)
       BENGALURU, July 17 (Reuters) - Mattress maker Sheela
Foam on Monday said it will buy a nearly 95% stake in rival
Kurlon for 21.5 billion rupees ($262.09 million) in a cash deal
as it eyes a bigger share in India's mattress market.
    Shares of the company, which makes the "Sleepwell" brand of
mattresses, had jumped about 6% after news website Moneycontrol
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.
    Ghaziabad-based Sheela Foam said it expects to complete the
transaction by November 30, 2023. 
    Kurlon's sales rose 5.4% to 8.09 billion rupees in fiscal
2022. Audited figures for Kurlon's fiscal 2023 were not
available yet, Sheela Foam said.
    Sheela Foam also said it will acquire about 35% in furniture
rental company Furlenco for 3 billion rupees.

($1 = 82.0326 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))