REG - Coats Group PLC - Strategic exit from Brazil and Argentina

CoatsAnnouncement

10/05/2022 07:00

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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

 Media             Richard Mountain / Nick Hasell  FTI Consulting   +44 (0)20 3727 1374
 Investors         Nick Kidd                       Coats Group plc  +44 (0)20 8210 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 (http://www.coats.com) .

 

 

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