Coats Group Acquires US-based Patrick Yarn Mill for USD 21m Plus Earnouts.
M2 EQUITYBITES-December 19, 2017-Coats Group Acquires US-based Patrick Yarn Mill for USD 21m Plus Earnouts
(C)2017 M2 COMMUNICATIONS http://www.m2.com
19 December 2017 - UK-based industrial thread manufacturer Coats Group plc (LSE: COA) has acquired US-based yarn maker Patrick Yarn Mill, the company said.
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 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 USD 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 USD 21m, with further payments of up to USD 4m 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.
Coats is an 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 USD 1.5bn.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||Dec 19, 2017|
|Previous Article:||Couche-Tard Close Acquisition of US Convenience Store Operator Holiday on 22 December.|
|Next Article:||Norwegian expands with flights to Madrid, Amsterdam and Milan.|