# Coats Group completes acquisition of OrthoLite, expands into premium insole market

- Link: https://www.directorstalkinterviews.com/coats-group-completes-acquisition-of-ortholite-expands-into-premium-insole-market/4121223486
- Published: 2025-10-30T07:29:00+00:00
- Author: Amilia Stone

**Coats Group plc** (LON:COA), a world leading Tier 2 supplier of critical components
to the apparel and footwear industry, has announced that, further to Coats’ announcements
on 16 July 2025 and 29 July 2025, following receipt of all required regulatory clearances,
it has completed the acquisition of OrthoLite Holdings LLC, the global market leader
in premium insoles.

This acquisition strengthens the product portfolio and capabilities of the existing
Coats footwear business through expansion into the attractive, high growth premium
insole segment. OrthoLite is highly complementary, with significant overlap in customers,
route to market and operational footprint, and opportunities to accelerate growth
through innovation and cross-selling. In addition, the Group is targeting initial
annualised joint cost synergies of $20 million available by 2028, leveraging Coats’
experience of delivering significant value from footwear acquisitions.

For the purposes of UKLR 7.3.3, Coats confirms that there has been no material change
affecting any matter contained in the Acquisition Announcement or the Further Information
Announcement.

To reflect the new profile and scale of the Group’s businesses, Coats is streamlining
its organisational structure into two divisions: Apparel and Footwear. Following
the exit from the non-core Americas Yarns business earlier this year, the remaining
Performance Materials businesses are being incorporated within this new structure
as follows:

·      The Personal Protection and Performance Threads businesses (c.80% of Performance
Materials) will become part of the Apparel division, which Adrian Elliott will continue
to lead.

·      The Telecom & Energy business (c.20% of Performance Materials) will become
part of the Footwear division, alongside OrthoLite. The enlarged Footwear division
will be led by Pasquale Abruzzese.

This new organisational structure better aligns the divisions and their underlying
technologies and reduces internal operating complexity. The structural improvements
in Performance Materials over the last 12 months, which have delivered substantial
margin progression and a return to organic growth, will enable the reorganisation
to be implemented efficiently. Coats’ external reporting will align to this new 
structure with effect from the next financial year, the year ending December 2026.

**Current Trading**

The Group is also pleased to report that trading through the third quarter at both
Coats and OrthoLite has continued to be in line with expectations. The Group will
release its usual trading update for the four-month period from 1 July to the end
of October 2025 on Friday, 7 November 2025.

> **David Paja, Coats Group Chief Executive, commented:**
> _“The acquisition of OrthoLite is an important step in our strategy to build a
> more growth-oriented group and we are delighted to welcome Glenn Barrett and our
> OrthoLite colleagues to Coats. We will now press ahead with our plans to accelerate
> innovation and [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
> in the_ _footwear industry as we combine the capabilities of two global leaders
> in adjacent product categories.”_

**Conference Call**

Coats Management will host a presentation for analysts and institutional investors
via webcast at 08:30 today. To access the meeting, please sign up using the following
link: [Coats Investor Meeting](https://www.investis-live.com/coats/68fb7259127f1e000e40fbac/wewwz).
The webcast can also be accessed via https://www.coats.com/en/investors/results/.

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