Coats Group plc (LON:COA), the world’s leading industrial thread and global footwear component manufacturer, has today announced 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 Group’ 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.
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.
