4 July 2023
Coats Group plc
Divestment of European Zips
Coats Group plc ('Coats', the 'Group' or the 'Company'), the world's leading industrial thread and global footwear component manufacturer, today announces that it has entered into an agreement to sell its European Zips business to Aequita, a German family office, for an expected nominal cash consideration of around $1m after the deduction of typical debt-like items. The transaction is expected to complete in Q3 2023.
An exit from European Zips is in line with Coats' strategic initiatives, announced in March 2022, to optimise the Company's portfolio and footprint, and improve the overall cost base efficiency. In the year ended 31 December 2022, the European Zips business generated revenues of around $50m at operating margins well below the Group average.
UK media Richard Mountain / Nick Hasell +44 (0) 20 3727 1374
Investors Victoria Huxster +44 (0) 7880 471 350
About Coats Group plc
Coats is a world leader in thread manufacturing and structural components for apparel and footwear, as well as an innovative pioneer in performance materials. These critical solutions are used to create a wide range of products, including ones that provide safety and protection for people, data and the environment. Headquartered in the UK, Coats is a FTSE250 company and a FTSE4Good Index constituent. Revenues in 2022 were $1.6bn.
Trusted by the world's leading companies to deliver crucial, innovative, and sustainable solutions, Coats provides value-adding products including apparel, accessory and footwear threads, structural footwear components, fabrics, yarns and software applications. Customer partners include companies from the apparel, footwear, automotive, telecoms, personal protection, and outdoor goods industries.
With a proud heritage dating back more than 250 years and spirit of evolution to constantly stay ahead of changing market needs, Coats has operations across some 50 countries with a workforce of over 17,000, serving its customers worldwide.
Coats connects talent, textiles, and technology, to make a better and more sustainable world. Worldwide, there are three dedicated Coats Innovation Hubs, where experts collaborate with partners to create the materials and products of tomorrow. It participates in the UN Global Compact and is committed to Science Based sustainability targets for 2030 and beyond, with a goal of achieving net-zero by 2050. Coats is also committed to achieving its goals in Diversity, Equity & Inclusion, workplace health & safety, employee & community wellbeing, and supplier social performance.
To find out more about Coats visit www.coats.com.