Sheela Foam Acquires Kurl-on And Furlenco Furniture Kurlon Enterprises Ltd.'s (KEL) acquisition will help Sheela Foam to diversify customer base and extend to a pan India footprint, whereas Furlenco deal will help Sheela Foam to enter the branded furniture and furniture rental market, as per the company
By Teena Jose •
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Sheela Foam Limited (SFL), a Home Comfort products company Polyurethane (PU) Foam manufacturer, has announced two simultaneous deals, with controlling stake in Kurlon Enterprises Limited and a stake in Furlenco furniture, an online furniture brand.
According to an official release, SFL is acquiring 94.66% shareholding in KEL at an equity valuation of INR 2150 crore. The indicative time period for the completion of the acquisition is by or before 30th November 2023.
Furthermore it added, SFL is also investing in 35% shareholding in HOK-Furlenco for an equity valuation of INR 857.14 crore. The indicative time period for the completion of the investment will be by or before 30th August 2023.
"With the coming together of Kurl On, Sheela Foam will further cement its leadership position in the modern mattress market. The investment of Furlenco would give it a very strong entry into the branded furniture market, and a much bigger market than its existing market. With these two within its fold, Sheela Foam is at an inflexion point, where opportunities created by inorganic activity would greatly strengthen the business model and propel a higher level of organic growth," said Rahul Gautam, chairman and managing director, SFL.
"The Kurlon deal 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 rubberised coir; wherein both these companies are leaders in their respective product segments," Sheela Foam said, adding it would now command a combined market share of around 21% in the modern mattress market in India.
Kurlon Enterprises Ltd.'s (KEL) acquisition will help Sheela Foam to diversify customer base and extend to a pan India footprint, whereas, Furlenco deal will help Sheela Foam to enter the fast-growing branded furniture and furniture rental market, and an opportunity to further diversify its presence even in the furniture sales market and become a full portfolio company in the segment, the company added.
