Sheela Foam Ltd to acquire Interplasp S.L., Spain

Sheela Foam Ltd in its Board meeting held on 26th July 2019 has approved to acquire Interplasp S.L., Spain.

Interplasp S.L. is engaged in the manufacture and marketing of slabstock polyurethane foam for bedding, furniture and other applications in Spain and Portugal. Interplasp S.L. produces about 11,000 tons of Polyurethane foam annually and had a turnover of E31.6 million (Euro thirty one million six hundred thousand) in 2018.

This acquisition would give Sheela Foam a presence in Europe, the world's largest polyurethane foam market, and a huge potential opportunity to grow.

Interplasp S.L. markets some of its foam to Morocco, in North Africa, and has also a significant opportunity to grow in Morocco and in some other North African markets.

Provides an opportunity to negotiate raw material prices for the consolidated quantity and also access to raw material prices across three global regions of India, Australia and Europe.

Benefit from cross fertilization of technologies and product portfolios in all three geographies.

Euro 42 million (Euro forty two million) is the cost of acquisition to be paid, subject to closing adjustments.

Shares of Sheela Foam Ltd was last trading in BSE at Rs.1270.05 as compared to the previous close of Rs. 1281.65. The total number of shares traded during the day was 39 in over 20 trades.

The stock hit an intraday high of Rs. 1279 and intraday low of 1260. The net turnover during the day was Rs. 49429.

Source : Equity Bulls

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