Leading Foam Manufacturer Sheela Foam Acquires Kurlon and Furlenco Furniture

Sheela Foam Completes Acquisition of Kurl On and Furlenco

Latest Updates: Sleepwell brand owner Sheela Foam has recently acquired leading furniture companies Kurlon and Furlenco, marking a significant expansion for the foam manufacturer. Furlenco, known for its strong presence in the online furniture segment, operates in major cities such as Bangalore, Mumbai, and Delhi NCR.

Under the acquisition agreement, Sheela Foam plans to obtain a 35% share capital of Furlenco for approximately Rs. 300 crores, subject to customary working capital adjustments. Furlenco's expertise and online market strength make it an attractive addition to Sheela Foam's portfolio.

Kurlon Enterprises Limited (KEL), on the other hand, specializes in manufacturing and marketing foam-based and coir-based home comfort products across categories like mattresses, furniture cushions, pillows, and coverings.

This strategic move by Sheela Foam is expected to significantly boost its market share in the mattresses segment, nearly doubling it from the current 20%-25% to 35%-40%, according to Moneycontrol. The acquisition is also projected to contribute around 9 billion rupees to Sheela Foam's consolidated revenue after its completion.

Negotiations for the acquisition of Kurlon have been underway since last year, with initial reports suggesting a deal worth $241 million, as reported by local media outlet ET Now.

Overall, Sheela Foam's acquisition of Kurlon and Furlenco showcases its ambition to expand its market presence, enhance its product offerings, and further strengthen its position in the competitive furniture and home comfort industry.