India's Sheela Foam to buy rival Kurlon in $396 mln deal - Moneycontrol (updated)

Sheela Foam

28/06/2023 07:00

(Adds deal details in paragraph 2, 4 and 5, background in
paragraph 6 and 7)
       BENGALURU, June 28 (Reuters) - 
    India's Sheela Foam  SHEF.NS  will acquire rival Kurlon
Enterprise for a cash consideration of 32.50 billion rupees
($396.37 million), Moneycontrol reported on Wednesday, sending
the Sleepwell mattress maker's shares up by 6.7%. 
    The deal will be executed in two tranches and is expected to
be concluded within a few months, a source familiar with the
matter told Moneycontrol.
        Sheela Foam and Kurlon, the manufacturer of Kurlon
mattresses, did not immediately respond to Reuters' requests for
comment. 
  
        The deal will help Sheela Foam to nearly double its
market share in the mattresses segment, Moneycontrol said,
taking it to 35%-40% from 20%-25% currently. 
  
         About 9 billion rupees is expected to be added to
Sheela Foam's topline at the consolidated level after the deal
concludes, the report said. 
  
        The company has been in talks to acquire Kurlon since
last year, when local media ET Now 
    reported
     a deal amounting to $241 million. 
  
        Earlier this year, Mint 
    reported
     that Sheela Foam is in advanced talks to buy furniture
rental startup Furlenco. 
  
    
($1 = 81.9950 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia
Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))