Coats sells European zips operation

Coats Group is carrying on with a major restructure of its operations with news that the UK-based industrial threads and footwear components manufacturer is now to divest its zips business.

Fresh from its announcement of the launch of a new footwear division, Coats is selling its European Zips business to Germany’s Aequita for an expected $1 million after the deduction of “typical debt-like items”. The transaction is expected to complete in Q3.

The exit from European Zips is in line with Coats’ strategic initiatives, announced in March 2022, “to optimise the company’s portfolio and footprint, and improve the overall cost base efficiency”.

In the year ended 31 December 2022, the European Zips business generated revenues of around $50 million at operating margins well below the group average, Coats noted.

Last week Coats created a new footwear division following its acquisition of Texon and Rhenoflex in 2022. 

After a period of integration, the group has launched Coats Footwear, “a global powerhouse” offering footwear and accessories producers worldwide an increased range of components and material solutions, alongside” unrivalled expertise, and technical know-how”.