NEW DELHI: Sheela Foam Ltd, the maker of mattress brand Sleepwell, on Monday said it would acquire a 94.66% stake in Kurlon Enterprises Ltd for Rs 2,150 crore. The company said it would acquire a 35% stake in online furniture firm House of Kieraya Pvt Ltd for Rs 300 crore.
The company’s board at its meeting held on July 17, approved the acquisition of Kurlon Enterprise and House of Kieraya, Sheela Foam said in a regulatory filing. “The company is acquiring 94.66% of KEL’s (Kurlon Enterprises Ltd ) share capital at an equity valuation of Rs 2,150 crore, subject to customary adjustments for net working capital, debt and surplus cash, if any,” it said.
“The acquisition will help the company to consolidate the existing fragmented market of mattresses and foam-based products,” Sheela Foam said. KEL deals mainly in the manufacture and marketing of foam and coir-based home comfort products across the ‘sit and sleep’ categories like mattresses, furniture cushions, pillows and coverings.
It was established in 1962 as Karnataka Coir Products, part of South India-based Pai family business group, and is currently headed by Jyothi Pradhan, the filing added.