Our acquisitions strategy
At Coats we have a clearly defined approach to acquisitions. We look to identify companies with unique capabilities, technology, innovations, or Intellectual Property that can be scaled to deliver value for customers and shareholders. Any acquisition must allow us to solve complex customer problems with ease.
We continue to identify strategic acquisitions, including value-adding bolt-on acquisitions principally in the areas of highly engineered Performance Materials and software solutions for the Apparel & Footwear industry.
A track record of success
A key part of our strategy for development and growth is to collaborate with companies with unique capabilities that can leverage our existing network. To date we have a proven track record of successfully integrating companies following acquisition:
- The acquisition of Pharr High Performance Yarns (Pharr HP) was completed in February 2020, after the binding agreement to acquire the business and assets was signed in November 2019. Pharr HP is a market leading manufacturer of high-performance engineered yarns and specialises in providing technical yarn solutions to the growing markets of Industrial Thermal Protection, Defence and Fire Service industries. The acquisition of Pharr HP’s manufacturing capabilities and customer base provides further expertise and scale to our existing Personal Protection business (part of the Performance Materials segment).
- In December 2018, we acquired ThreadSol, a cloud-based digital applications provider, which became part of Coats Digital. ThreadSol’s technology focuses on fabric usage optimisation in apparel manufacturing and helps customers reduce fabric waste and cost, and establish accurate product costing. The acquisition of ThreadSol followed shortly after the announcement in December 2018, of our strategic investment in Twine, an Israeli based technology start-up which has developed a revolutionary digital thread dyeing system.
- The acquisition of Patrick Yarn Mills in December 2017 supports a key aspect of our growth strategy, to identify innovation synergies that build scale in high-tech sectors such as cut resistant and flame retardant yarns, and complement our skills in spinning technologies.
- In June 2016 we acquired Gotex, a Spanish company which designs and manufactures high-tech industrial yarns and tapes used in the telecommunications, energy and oil and gas sectors. Since acquisition Gotex has delivered significant revenue growth and geographic expansion.
The acquisition of Fast React Systems in June 2016 and GSD in May 2015, allowed us to grow our services offering in the areas of improving customers’ productivity and operational efficiency.