Coats Group PLC Strategic exit from Brazil and Argentina (8581K)

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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 
                    Richard Mountain / Nick                    [phone] 
Media                Hasell                   FTI Consulting    1374 
                                              Coats Group      [phone] 
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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May 10, 2022 03:41 ET (07:41 GMT)