Coats Group plc (LON:COA), the world’s leading industrial thread manufacturer, announced the sale of its non-core North America Crafts business to Spinrite Acquisition Corp, a leading provider of craft products in North America.
· Cash consideration payable at completion of $37m
· Sale proceeds will initially reduce Group net debt
· Further value accretive bolt-on acquisitions in the strategic focus areas of high growth and high-tech Performance Materials and Software Solutions businesses continue to be sought
· The sale of North America Crafts is subject to customary closing conditions and is expected to complete during the following weeks
Rajiv Sharma, Group Chief Executive, Coats, said: “The sale of our standalone North America Crafts business allows us to focus completely on our high performing business-to-business global Apparel and Footwear, and Performance Materials businesses. It also gives North America Crafts more opportunities to grow by being part of a large crafting group.”
The disposal of North America Crafts constitutes a Class 2 transaction for the purposes of the UK Financial Conduct Authority’s Listing Rules. Further details in respect of North America Crafts are set out at the end of this announcement.