Sheela Foam: Acquisition of Spanish firm Interplasp
The Indian company Sheela Foam Ltd. announced that it will acquire Interplasp S.L. with headquarters in Yecla, southeastern Spain, for approximately EUR 42 million. The transaction is scheduled to be completed on or before 30 September 2019, subject to closing conditions.
Interplasp was established in 1987 and for the last 32 years has specialised in the manufacture and conversion of flexible polyurethane foams, supplying mainly to mattress and furniture manufacturers in Spain. It also markets its foam to mattress manufacturers in Portugal and foam converters in Morocco. The company produces about 11,000 t of PU foam annually and had a turnover of EUR 31.6 million in 2018.
According to Sheela Foam, the acquisition will give the company a presence in Europe, which is the world's largest polyurethane foam market. Another advantage of the acquisition is that the company will now be able to negotiate raw material prices for the consolidated quantity and have the option to buy raw materials from India, Australia and Europe.