The combination of Coats and Rhenoflex represents a strategic opportunity for Coats to establish a leading global platform in footwear components and strengthen its position with global footwear brands, the company says.
Rhenoflex supplies high-performing footwear reinforcement components including heel counters, toe puffs, interlinings and eyelets, alongside sustainable lifestyle reinforcement material solutions for the luxury industry.
It has a global footprint with manufacturing operations in Vietnam, China, and Germany, providing close proximity to major manufacturing hubs for footwear and luxury fashion accessories brands. The company’s strategic focus on sustainability and its reputation as a technology leader will further enhance Coats’ portfolio of innovative offerings.
Coats group chief executive, Rajiv Sharma, says: “We are delighted to announce the acquisition of Rhenoflex, which is a complementary addition to Coats. Rhenoflex is a high-quality business focused on sustainability and innovation and presents an exciting opportunity for Coats to establish a leading global platform in footwear components.”
The acquisition comes after Coats completed a deal to purchase Texon, a developer of structural component materials for footwear, last month.
Under the terms of the transaction, Coats agreed to pay an enterprise value of US$237m, and a total net cash consideration of $211m after deducting assumed retirement liabilities and other customary adjustments.