LONDON, UK: Coats Group plc, the world’s leading industrial thread and global footwear component manufacturer, has announced that it has agreed to sell its European Zips business to Aequita, a German family office, for an expected nominal cash consideration of around $1m.
The deal, which is expected to close in the third quarter of 2023, is part of Coats’ strategic initiatives to optimise its portfolio and footprint, and improve its cost base efficiency. The European Zips business, which generated revenues of around $50m in 2022, operates at operating margins well below the Group average.
Coats said that the sale will allow it to focus on its core businesses of industrial thread and footwear components, which have higher growth potential and profitability. The Group also said that it will continue to serve its customers in Europe with its other products and services.
Aequita, a German family office that invests in medium-sized companies, said that it plans to invest in the European Zips business and leverage its expertise and network to grow its market share and customer base. Aequita said that it sees significant opportunities for the European Zips business in the apparel, luggage and automotive sectors.
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