Coats Group PLC Acquisition (8871Y)
11 December 2017 - 6:00PM
UK Regulatory
TIDMCOA
RNS Number : 8871Y
Coats Group PLC
11 December 2017
11 December 2017
Coats Group plc
Acquisition of Patrick Yarn Mill
Coats Group plc ('Coats' or the 'Company'), the world's leading
industrial thread manufacturer, today announces the acquisition of
Patrick Yarn Mill.
Patrick Yarn Mill is a manufacturer of high-performance
engineered yarns based in North Carolina, US. It specialises in
cut-resistant and flame retardant yarns. It also produces yarns
from recycled fibres marketed under its earthspun(R) trademarks and
with its large solar installation promotes its earth friendly yarns
as 'Spun by the Sun'.
Founded in 1963, Patrick Yarn Mill has 150 employees. In 2016,
its annual sales were $36.5m. Patrick Yarn Mill's unique spinning
competencies in engineered performance yarns offer an opportunity
to expand Coats' existing Performance Materials portfolio as well
as to extend its innovation capability. Coats will support Patrick
Yarn Mill's expansion into high-growth markets by leveraging Coats'
unrivalled geographic footprint, breadth of global customer
relationships and strong corporate brand.
The initial consideration is US$21 million, with further
payments of up to US$4 million over a three year period to 2020,
contingent on Patrick Yarn Mill achieving certain performance
targets. The acquisition will be funded from Coats' operating cash
flows and existing debt facilities.
Rajiv Sharma, Coats Group Chief Executive, said:
'Patrick Yarn Mill is an exciting acquisition that supports a
key aspect of our growth strategy: to identify innovative
capabilities that build scale in high technology sectors. It is a
dynamic, customer focused company and its unique spinning systems
combined with our existing technology portfolio will provide a
strong market offering. We will look to draw upon our demonstrable
track record of successfully integrating bolt-on companies
following the acquisitions in 2016 of Gotex and Fast React, both of
which are performing well under Coats' ownership.'
Enquiry details
UK media Richard Mountain / Nick Hasell +44 (0) 20 3727 1374
Investors Rob Mann +44 (0) 20 8210 5175
This announcement contains inside information for the purposes
of the Market Abuse Regulation.
About Coats Group plc
Coats is the world's leading industrial thread manufacturer and
a major player in the Americas textile crafts market. At home in
some 60 countries, Coats employs over 19,000 people across six
continents. Revenues in 2016 were US$1.5bn. Coats' pioneering
history and innovative culture ensure the company continues leading
the way around the world, providing complementary and value added
products and services to the apparel and footwear industries;
applying innovative techniques to develop high technology
Performance Material threads and yarns in areas such as automotive
composites and fibre optics; and extending the crafts offer into
new markets and online. Headquartered in the UK, Coats is a FTSE250
listed company on the London Stock Exchange. To find out more about
Coats visit www.coats.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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