COA
29/07/2015 08:30
ASSET
PRICE SENSITIVE
REL: 0830 HRS Coats Group plc
ASSET: COA: ASSET: COA: EMEA Crafts sale to complete
Coats Group plc
EMEA Crafts sale to complete
Further to the announcement of 19 February 2015, Coats Group plc('Coats' or
'the Company') announces that the sale of its EMEA Crafts business ('EMEA
Crafts') to Aurelius Group has been finalised and will complete on 31 July
2015
This 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 US$10 million. 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.
Enquiry details
UK media
Richard Mountain +44 20 3727 1374
New Zealand and Australian media
Geoff Senescall +64 9 309 5659
Investors
Jaideep Thatai +44 20 8210 5086
About EMEA Crafts
EMEA Crafts is a leading 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 $124.9 million
and a pre-exceptional operating loss of $9.8 million. Including exceptional
items, namely an $18.8 million impairment of property, plant and equipment
and intangible assets, EMEA Crafts incurred an operating loss of $28.6
million. As at 31 December 2014, after impairment, the business had net
tangible assets of $35.4 million, including cash retained within the business
as part of the sale.
The UK Crafts business, which generated revenues of $22.2 million in 2014,
will remain within Coats.
About Coats
With a rich heritage dating back to the 1750s, 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 US$1.7bn.
To find out more about Coats visit www.coats.com
End CA:00267545 For:COA Type:ASSET Time:2015-07-29 08:30:32
