REG - Coats Group PLC - Strategic exit from US Yarns

CoatsAnnouncement

03/04/2025 07:00

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RNS Number : 4345D  Coats Group PLC  03 April 2025

3 April 2025

 

 

Coats Group plc

 

Strategic exit from US Yarns

 

Coats Group plc ('Coats', the 'Group' or the 'Company'), the world's leading
industrial thread and footwear components manufacturer, announces its
intention to fully exit from the Performance Materials ('PM') division's US
Yarns business based in Kings Mountain, North Carolina. This follows the
strategic review of the Americas Yarns business which started in Q4 2024 and
has already resulted in the closure of the Toluca, Mexico facility in December
2024.

 

The strategic review has concluded that the Americas Yarns business does not
fit with Coats' future strategy and the exit from this non-core operation will
result in a positive annualised impact to both the PM and Group adjusted EBIT
margins. The exit process is expected to complete in Q2 and is anticipated to
generate a modest cash inflow, after closure costs, and will allow management
to focus on driving forward and growing other parts of the Group's attractive
portfolio.

 

 Enquiry details
 Investors         Anjali Kotak                    Coats Group plc  +44 (0) 7880 471 350
 Media             Richard Mountain / Nick Hasell  FTI Consulting   +44 (0) 20 3727 1374

 

In 2024, revenues and EBIT for US Yarns was $68million and $3million.

 

About Coats Group plc

Coats is a world leader in thread manufacturing and structural components for
apparel and footwear, as well as an innovative pioneer in performance
materials. These critical solutions are used to create a wide range of
products, including ones that provide safety and protection for people, data
and the environment. Headquartered in the UK, Coats is a FTSE250 company and a
FTSE4Good Index constituent. Revenue in 2024 was $1.5 billion.

Trusted by the world's leading companies to deliver crucial, innovative, and
sustainable solutions, Coats provides value-adding products including apparel,
accessory and footwear threads, structural footwear components, fabrics, yarns
and software applications. Customer partners include companies from the
apparel, footwear, automotive, telecoms, personal protection, and outdoor
goods industries.

With a proud heritage dating back more than 250 years and a spirit of
evolution to constantly stay ahead of changing market needs, Coats has
operations across some 50 countries with a permanent workforce of more than
16,000, serving its customers worldwide.

Coats connects talent, textiles, and technology, to make a better and more
sustainable world. Worldwide, there are four dedicated Coats Innovation Hubs,
where experts collaborate with partners to create the materials and products
of tomorrow. It participates in the UN Global Compact and is committed to
validated Science Based sustainability targets for 2030 and beyond, with an
aspiration of achieving net-zero by 2050. Coats is also committed to achieving
its goals in Diversity, Equity & Inclusion, workplace health & safety,
employee & community wellbeing, and supplier social performance. To find
out more about Coats visit www.coats.com.
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