Sheela Foam to buy rival mattress maker Kurlon for $241 million: Report

Indian mattress maker Sheela Foam Ltd will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources.

Should the deal go through, Sheela Foam could command a market share of 35-40%, Moneycontrol had reported last month, quoting a person familiar with the planned deal.

Sheela Foam and Kurlon did not immediately respond to Reuters' requests for comment.

Sheela Foam, which sells the "Sleepwell" brand of mattresses, is the only listed mattress maker in the country.

The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India's modern mattresses sector at 175 billion rupees.

Sheela Foam shares rose as much as 5% to 1,338 rupees following the report.

News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the Moneycontrol report added.

It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.

Kurlon's annual consolidated net profit has declined from 760.9 million rupees in fiscal year 2020 to 179.7 million rupees in fiscal year 2022.

Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across India.