6th Jun 2016 09:33
LONDON (Alliance News) - Industrial thread manufacturer Coats Group PLC on Monday said it has bought Gotex SA and Fast React Systems Ltd.
Gotex, which is based in Barcelona, makes industrial yarns and tapes that are used to insulate cables and pipes. Coats will pay an initial consideration of USD28 million, with a further payment of up to USD4 million after a two-year period providing Gotex achieves certain performance targets.
Fast React, which is based in Derby, provides software services to manufacturers and retailers in the apparel and footwear industries. Coats will pay an initial consideration of USD9 million, with further payments of up to USD4 million over a three-year period subject to Fast React meeting certain performance targets.
Coats will fund the acquisitions from its operating cash flows and existing bank facilities.
"Gotex is an exciting first acquisition for our Speciality business that is fully aligned with our growth strategy; a global market leader in developing and producing innovative, high-performance materials that complement our existing product portfolio," Chief Executive Paul Forman said in a statement.
"Following last year's acquisition of GSD, Fast React is a further important step in enhancing our Global Services offering and addressing the growth in demand from our customers for value-added services in operational efficiency. Both businesses have delivered strong growth over recent years and we are confident this will continue under Coats ownership," he added.
Shares in Coats were up 2.4% to 29.45 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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