Coats Group, the industrial thread manufacturer, has announced the acquisition of Patrick Yarn Mill.
Patrick Yarn Mill is a manufacturer of engineered yarns based in North Carolina, US. It specialises in cut-resistant and flame-retardant yarns. It also produces yarns from recycled fibres marketed under its Earthspun trademark.
Founded in 1963, Patrick Yarn Mill has 150 employees. In 2016, its annual sales were $36.5m. Coats will support Patrick Yarn Mill's expansion into high-growth markets by leveraging Coats' geographic footprint, breadth of global customer relationships and strong corporate brand.
The initial consideration is $21m, with further payments of up to $4m over a three-year period to 2020, contingent on Patrick Yarn Mill achieving certain performance targets. The acquisition will be funded from Coats' operating cash flows and existing debt facilities.