Industrial thread manufacturer Coats Group has completed its acquisition of Texon, a developer of structural component materials for footwear.

The acquisition, Coats said this week, will strengthen its position in the athleisure footwear market.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Under the terms of the transaction, Coats agreed to pay an enterprise value of US$237m, and a total net cash consideration of $211m after deducting assumed retirement liabilities and other customary adjustments. 

Texon is a supplier of structural components, including heel counters, toe puffs and insoles, to the footwear market. It has operations in both Asia and Europe.

Announcing the acquisition earlier this month, Rajiv Sharma, Coats Group chief executive, said: “The acquisition of Texon will strengthen our existing presence in the highly attractive athleisure footwear market. The business is complementary to Coats and provides attractive future commercial opportunities as we work together leveraging our combined expertise and knowledge to succeed with our customers. We recognise and share Texon’s focus on sustainability and innovation and believe that this acquisition strengthens our ability to fulfil these shared ambitions.”

Coats expects the acquisition to be earnings enhancing in the first year and to generate annual synergies of around US$5m by the end of the second full year of ownership.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Shares in Coats were up 0.5% to 66.90 pence each in London yesterday morning (21 July).

A Coats filing states that for the year ended 31 December 2021, Texon generated revenue of US$132m; EBITDA of US$21m; and adjusted operating profit of US$17m.