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.
Commenting on the acquisition, Rajiv Sharma, Coats Group Chief Executive, said: 'Patrick Yarn Mill is an exciting acquisition that supports a key aspect of our growth strategy: to identify innovative capabilities that build scale in high technology sectors. It is a dynamic, customer focused company and its unique spinning systems combined with our existing technology portfolio will provide a strong market offering.
He added: “We will look to draw upon our demonstrable track record of successfully integrating bolt-on companies following the acquisitions in 2016 of Gotex and Fast React, both of which are performing well under Coats' ownership.”