Coats Group PLC Strategic exit from Brazil and Argentina (8581K)
10 May 2022 - 5:41PM
UK Regulatory
TIDMCOA
RNS Number : 8581K
Coats Group PLC
10 May 2022
10 May 2022
Coats Group plc
Strategic exit from Brazil and Argentina
Coats Group plc ('Coats', the 'Group' or the 'Company'), the
world's leading industrial thread manufacturer, today announces
that it has signed an agreement to sell its business in Brazil and
Argentina to Reelpar SA, an entity backed by a Sao Paulo Private
Equity Firm. The deal is expected to complete in May, following
customary completion procedures.
As a result of the disposal there will be a positive annualised
impact of circa 50bps uplift to the Group's adjusted operating
margins. Under the terms of the disposal, Coats will fund $10m to
Reelpar S.A. to support restructuring of the business.
An exit from the Brazil and Argentina business is in line with
Coats' strategic initiatives, announced in March, to accelerate
profitable sales growth and transform the company.
Enquiry details
Richard Mountain / Nick +44 (0)20 3727
Media Hasell FTI Consulting 1374
Coats Group +44 (0)20 8210
Investors Nick Kidd plc 5090
About Coats Group plc
Coats is the world's leading industrial thread company. At home
in some 50 countries, Coats has a workforce of over 18,000 people
across six continents. Revenues in 2021 were US$1.5bn. Coats
provides complementary and value-adding products, services and
software solutions to the apparel and footwear industries. It also
applies innovative techniques to develop high technology
performance materials threads, yarns, fabrics and composites in
areas like personal protection, telecoms, energy, transportation,
and household and recreation. Headquartered in the UK, Coats is a
constituent of the FTSE 250 and FTSE4Good Index Series. It is a
participant in the UN Global Compact, a member of the Ellen
MacArthur Foundation, has approved short term Science Based Targets
to 2030 and is committed to developing a long-term target to reach
net-zero emissions by 2050, the highest level of ambition on
climate change under the Science Based Target initiative. The
pioneering history and innovative culture of Coats enable the
delivery of its purpose to connect talent, textiles and technology
to make a better and more sustainable world. For further
information go to www.coats.com .
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