India's Sheela Foam to buy rival Kurlon in $396 mln deal - Moneycontrol

BENGALURU, June 28 (Reuters) - Indias Sheela Foam (SHEF.NS) will acquire rival Kurlon Enterprise for a cash consideration of 32.50 billion rupees ($396.37 million), Moneycontrol reported on Wednesday, sending the Sleepwell mattress makers shares up by 6.7%.

The deal will be executed in two tranches and is expected to be concluded within a few months, a source familiar with the matter told Moneycontrol.

Sheela Foam and Kurlon, the manufacturer of Kurlon mattresses, did not immediately respond to Reuters requests for comment.

The deal will help Sheela Foam to nearly double its market share in the mattresses segment, Moneycontrol said, taking it to 35%-40% from 20%-25% currently.

About 9 billion rupees is expected to be added to Sheela Foams topline at the consolidated level after the deal concludes, the report said.

The company has been in talks to acquire Kurlon since last year, when local media ET Now reported a deal amounting to $241 million.

Earlier this year, Mint reported that Sheela Foam is in advanced talks to buy furniture rental startup Furlenco.

($1 = 81.9950 Indian rupees)