Business

Kurlon: Sleepwell company buys Kurlon for ₹2,150 crore

MUMBAI: Sheela Foam, best known for its Sleepwell brand of mattresses, will buy rival Kurlon Enterprises for Rs 2,150 crore in what is its largest acquisition as the Rahul Gautam-controlled company seeks a stronger foothold in the home comfort market.
The Noida-based company, founded by Gautam’s mother in 1971, is acquiring 94. 7% of Kurlon from promoter Sudhakar Pai (related to Ranjan Pai of Manipal Group) for Rs 2,150 crore. It plans to acquire the remaining 5. 3% held by employees and other shareholders (worth Rs 121 crore) in the near future.
It has also signed a noncompete agreement with the promoter that prohibits Pai from entering the home comfort market for five years.
Simultaneously, Sheela Foam will acquire a 35% stake in furniture rental company House of Kieraya, which owns the Furlenco brand, for Rs 300 crore, becoming its largest shareholder. It has plans to consolidate its holding in Furlenco, currently valued at Rs 857 crore.
The remaining 65% in the 11-year-old company is held by Furlenco founderAjith Mohan Karimpana & employees, Lightbox Ventures and 80 other shareholders including actor Deepika Padukone.
The Kurlon and Furlenco transactions, expected to be concluded by November, will be funded by a com-bination of internal accruals (Rs 850 crore), debt and equity, said Sheela Foam CMD Gautam. The M&As have been struck after a gap of four years. The Rs 2,873crore Sheela Foam previously acquired five companies including Spain-based Interplasp in 2019 and Australia-based Joyce in 2005.
The Kurlon takeover will help save costs as both mattress makers have complementary manufacturing facilities. On the other hand, Furlenco will mark Sheela Foam’s entry into the online furniture business.

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