Coats has sold North America Crafts to Spinrite. North America Crafts is a business run by Coats. Approximately 560 North America Crafts employees will become part of Spinrite. Coats is an industrial thread manufacturer. Spinrite is a craft company and provider of craft knitting yarns in North America. Spinrite produces both branded and private label products and has a diversified presence across multiple channels with a focus on craft retailers.

The sale includes the well known Crafts brands Red Heart, Coats & Clark, Aunt Lydia and Susan Bates. Anchor, Dual Duty XP and J&P Coats will be licensed for varying terms.

Coats has had a crafts heritage in North America and a long association with crafters but decided to sell North America Crafts since the crafting market has evolved in the past decade and requires a higher degree of specialisation, scale, innovation and digital capabilities to succeed.

Coats expects with the sale of North America Crafts to focus complete attention on its high performing business-to-business global apparel and footwear, and performance materials segments. Coats will use proceeds from the sale to make further value accretive acquisitions in the strategic focus areas of high-tech performance materials and software solutions businesses.