World's leading industrial thread manufacturer, Coats Group plc 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.
As per reports, the transaction will result in a positive annualized impact of circa 50bps uplift to the Group's adjusted operating margins. Under the terms of the disposal, Coats will fund $10m to Reelpar SA to support restructuring of the business.
Announced in March, the exit from the Brazil and Argentina business will accelerate Coat’s sales growth and transform the company.
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. The group 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.