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Coats Group to Close Sale of EMEA Crafts on 31 July
Wednesday 29 July 2015

28 July 2015 - UK-based industrial thread and consumer textile crafts business Coats Group plc's sale of its EMEA Crafts business to Aurelius Group will complete on 31 July 2015, the group said.
 
According to Coats, the sale has been a complex, multi-jurisdictional transaction and completion has taken place against a backdrop of increasingly poor market conditions which have affected the trading performance of EMEA Crafts.

Accordingly, Coats has agreed to a nominal final consideration payable to Coats compared to an original consideration of USD 10m.

An amount of cash, broadly in line with the original terms of the sale, will be retained within the business being sold, which will result in the transaction being cash negative.
 
The EMEA Crafts business will be presented as a discontinued item in Coats' 2015 half year results, due 3 August 2015. The precise quantum of the loss on disposal will be determined on completion and reported in the 2015 full year results.

EMEA Crafts is a player in the European textile crafts market focusing on handknitting, needlecraft and lifestyle fabric products. 

The business supplies a range of highly-respected brands including Schachenmayer, Patons, Rowan and Regia.
 
In 2014 EMEA Crafts (excluding the UK) generated revenues of USD 124.9m and a pre-exceptional operating loss of USD 9.8m.

Including exceptional items, namely an USD 18.8m impairment of property, plant and equipment and intangible assets, EMEA Crafts incurred an operating loss of USD 28.6m.

As at 31 December 2014, after impairment, the business had net tangible assets of USD 35.4m, including cash retained within the business as part of the sale.
 
The UK Crafts business, which generated revenues of USD 22.2m in 2014, will remain within Coats.
 
Coats is the world's leading industrial thread and consumer textile crafts business, at home in more than 70 countries, employing approximately 20,000 people across six continents. Revenues in 2014 were USD 1.7bn.
Details
Date Published: 29/07/2015
Target: Coats/EMEA Crafts business
Country: UK
Sector: Clothing/Textiles
Type: Divestment
Financing: Cash
Status: Agreed
Vendor: Coats Group plc
Buyer: Aurelius Group
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