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Sheela Foam is set to acquire Kurlon Enterprise for a total amount of Rs 3,250 crore

Jun 28, 2023

By: BlinkX Research Team

Sheela Foam Ltd is set to acquire Kurlon Enterprise Ltd in a two-tranche deal worth Rs 3,250 crore. Upon completion of the deal, it is expected to nearly double Sheela Foam's market share, enabling it to reach approximately 40 percent. 

In addition to the market share benefits, the deal is expected to generate cost savings, operational synergies, and capacity optimization at both companies' manufacturing facilities. The consolidation will also enhance Sheela Foam's purchasing power for raw materials, leading to bulk discounts.

The combined impact of these factors is predicted to contribute around Rs 900 crore to Sheela Foam's consolidated revenue. Currently the shares is trading higher by 5% at  Rs 1226.90

The acquisition is anticipated to be finalized within the next few months. Sheela Foam's prominent brands include Sleepwell mattresses, Feather Foam, and Lamiflex. The acquisition will allow the company to expand its presence in the South and East regions, complementing its already strong presence in the North and West. 

Content Source: Media reports