Business
Further Information re Acquisition of OrthoLite
Further Information re Acquisition of OrthoLite.
About this update from Coats Group Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.\nANNOUNCEMENT PURSUANT TO UK LISTING RULE 7.3\n \n\n\n\n\n\n\n\n\n\n\n\n \n \n\nCoats Group PLC\n29 July 2025\nFurther Information regarding the Acquisition of OrthoLite Holding LLC ('OrthoLite')\n \nOn 16 July 2025, Coats Group plc ('Coats', the 'Company' and, together with its subsidiary undertakings, the 'Group') announced it had signed a definitive agreement to acquire OrthoLite Holding LLC ('OrthoLite') (the 'Acquisition'), the global market leader of premium insoles, for an initial enterprise value of $770m (the 'Original Announcement'). The Acquisition constitutes a \"Significant Transaction\" for the purposes of the UK Listing Rules. This announcement includes the additional information required to be disclosed in accordance with the requirements of UKLR 7.3.1R and 7.3.2R and is supplemental to, and should be read in conjunction with, the Original Announcement. Certain information contained in the Original Announcement (accessible at Coats' website) is restated in this announcement.\nTransaction Highlights\n· Compelling strategic fit accelerating Coats' strategy to create a 'super tier 2' supplier for footwear components, significantly strengthening the existing Coats footwear business through expansion into the attractive, high-growth premium insole segment.\n· Highly complementary to Coats' existing footwear business, with significant overlap in customer base, route-to-market and operational footprint, providing attractive future commercial opportunities to accelerate growth through innovation and cross-selling.\n· Significant initial annualised joint cost synergies identified of $20m expected to be delivered by 2028 from savings in joint footprint optimisation, operational excellence, strategic procurement and support functions, leveraging Coats' experience of successfully delivering synergies from footwear acquisitions.\n· Attractive financial effects, accelerating the delivery of Coats' existing medium-term targets; enhancing Group EBIT margins and EPS accretive from the first full year, with ROIC exceeding WACC by 2028, and ...