Kurl-on, a maker of mattresses, furniture and furnishing products, has announced the acquisition of US-based bedding products manufacturer Spring Air for an undisclosed amount.

The acquisition covers Spring Air’s operations across India, Bangladesh, Sri Lanka and Pakistan. KPMG Corporate Finance was the transaction advisor for the deal.

The acquisition is expected to strengthen Kurl-on’s presence in the premium-to-luxury bedding segment in the price range of ₹1.5-5 lakh, enabling the company to tap the fast-growing demand, from e 5-star hotels to retail customers. The Spring Air and Englader brands of mattresses will now be sold under the Kurl-on umbrella brand.

Luxury bedding

In FY19, the premium bedding segment contributed 10-12 per cent of Kurl-on’s ₹1,200-crore turnover. “Our premium bedding segment was limited to ₹1-1.6 lakh. With this acquisition, we hope to cross the ₹2,000-crore-revenue mark in two years,” Sudhakar Pai, CMD of Kurl-on, told BusinessLine .

“While Kurl-on regularly invests in R&D, we are also open to exploring newer avenues for technological advancements, and it is here that we saw a fit with Spring Air,” he added. Kurl-on has taken 100 employees of Spring Air on its rolls, and merged two of its factories with its own units in Pune and Gurugram.

Spring Air’s products will now be available in 200 of Kurl-on’s high-end stores in India, a network it has established over the past 10 years. They will also be available across Kurl-on’s 1,300-plus exclusive franchise outlets and 7,000-plus multi-brand outlets across the country.

“Given the increasing consumer spend on home furnishing and decor, we see significant premiumisation in this sector in line with international markets,” said Ashok Kumar, CEO and Member of the Board, Spring Air Bedding Company India Ltd and Spring Air Middle East.

Currently at ₹10,000 crore, the mattress industry is projected to reach ₹14,000 crore by 2021, at a CAGR of 9 per cent.

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