Sheela Foam Ltd is set to fully acquire rival Kurlon Enterprise Ltd for a cash consideration of ₹3,250 crore, as per a Moneycontrol report.
The acquisition, which will be carried out in two tranches, is expected to be concluded within a couple of months. This move will help Sheela Foam, known for the Sleepwell brand, nearly double its market share.
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With the acquisition of Kurlon Enterprise – the maker of the Kurl-on brand of mattresses – Sheela Foam’s market share in India’s organised mattress segment could increase to 35-40% from the current 20-25%. The deal will also lead to cost benefits and synergies.
Sheela Foam has a strong presence in the North and West of India, while Kurlon has a stronghold in the South and East. The acquisition will therefore significantly expand Sheela Foam’s geographical reach.
Price Action: Sheela Foam shares were up 6.54% to trade at ₹1,254.30 in the early hours of trading on Wednesday.
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