(Alliance News) - Coats Group PLC on Tuesday said that it has it has agreed to acquire US-based yarns manufacturer Pharr High Performance Yarns for USD37 million.
The Uxbridge, London-based company, which manufactures sewing threads, zips and fasteners, said the acquisition of Pharr will provide further expertise and scale to the company's existing Personal Protection business division.
McAdenville, North Carolina-based Pharr manufactures high-performance engineered yarns for the industrial thermal protection, defence and fire service industries. In 2018, Pharr recorded annual sales of USD110 million and adjusted earnings before interest, taxes, depreciation and amortisation of USD5 million.
Rajiv Sharma, chief executive of Coats, said: "Pharr HP expands our existing manufacturing capabilities and widens our innovation offering to drive further penetration into the Personal Protection market. With Pharr HP we are acquiring deep expertise in technical yarn solutions helping us to create ever lighter, stronger and more comfortable yarns for the most extreme environments, protecting many of those who protect us."
The acquisition, which is being funded from existing cash and debt facilities of Coats, is expected to close in early 2020.
Coats shares were up 3.0% in London at 70.21 pence each on Tuesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Coats (COA)