UK-based Coats Group plc, the world’s leading industrial thread manufacturer, has announced the acquisition of Patrick Yarn Mill, an American company known for manufacturing high-performance engineered yarns.
The company has paid US $ 21 million as part of the acquisition deal and will further pay around US $ 4 million in next three years.
Rajiv Sharma, Group Chief Executive of Coats states that the acquisition of Patrick Yarn Mill provides a stimulating opportunity for the company to grow. “This move would allow Coats to expand its existing Performance Materials portfolio as well as to extend its innovation capability,” he added.
Patrick Yarn Mill, which noted annual sales of US $ 36.5 million in the year 2016, would also get an opportunity to expand its presence in the high-growth markets by leveraging Coats’ unparalleled geographic footprint. Cut-resistant yarns from recycled fibres and flame retardant yarns are also manufactured by the mill. Its recycled fibres are marketed under the earthspun trademark.
“The acquisition will be beneficial for both the companies as there is a lot of synergy between our product offerings and technology,” maintained Gilbert Patrick, President of Patrick Yarn Mill in a statement issued by the company.
The thread manufacturer previously completed the successful purchase of Gotex (a Spanish designer and manufacturer of high-performance fibres, yarns and tapes) and FRS (a British software solutions provider for the apparel and footwear sectors).