Sheela Foam, the maker of mattress brand Sleepwell, on Monday said it would acquire a 94.66 per cent stake in Kurlon Enterprises (KEL) for Rs 2,035 crore. 

The company also said it would acquire a 35 per cent stake in online furniture firm House of Kieraya for Rs 300 crore. 

The company’s board at its meeting held on July 17, 2023, had approved the acquisition of KEL and House of Kieraya, Sheela Foam said in a regulatory filing. 

“The company is acquiring 94.66 per cent of KEL’s 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 added. 

In a statement, the company said the cost of acquiring 94.66 per cent in KEL was around Rs 2,035 crore. 

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. 

“With the coming together of Kurl On, Sheela Foam will further cement its leadership position in the modern mattress market. The investment of Furlenco would give it a very strong entry into the branded furniture market, and a much bigger market than its existing market,” Sheela Foam Chairman and Managing Director Rahul Gautam said in a statement.