BENGALURU (Reuters) – Mattress maker Sheela Foam on Monday said it will buy a nearly 95% stake in rival Kurlon for 21.5 billion rupees ($262.09 million) in a cash deal as it eyes a bigger share in India’s mattress market.
Shares of the company, which makes the “Sleepwell” brand of mattresses, had jumped about 6% after news website Moneycontrol reported the deal earlier on Monday. They are still down about 7% since talks were first reported late in December.
Kurlon has over 50 warehouses and 12 manufacturing facilities across five Indian states, according to its latest annual report.
Ghaziabad-based Sheela Foam said it expects to complete the transaction by November 30, 2023.
Kurlon’s sales rose 5.4% to 8.09 billion rupees in fiscal 2022. Audited figures for Kurlon’s fiscal 2023 were not available yet, Sheela Foam said.
Sheela Foam also said it will acquire about 35% in furniture rental company Furlenco for 3 billion rupees.
($1 = 82.0326 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Nivedita Bhattacharjee)