The world's largest thread manufacturer, Coats Plc, has agreed to invest $3 million in Tag-it Pacific as part of an exclusive ten year co-marketing and supply agreement.

Under the agreement, which was announced on Tuesday, Tag-it trim packages will exclusively offer Coats thread. Prior to the deal, Tag-it was a longtime customer of Coats, distributing its thread to sewing operations.

"The Coats investment is a testament to the strength of our business model and will add to our ability to attract quality partners and customers," said Colin Dyne, chief executive officer of Tag-it Pacific.

"I believe this relationship will give us access to a wide range of new customers assisting in the execution of our company's growth and business plans. The co-marketing and supply agreement provides for selected introductions into Coats' customer base and has the potential to rapidly accelerate our growth plans and to introduce our Managed Trim Solution to apparel manufacturers on a broader basis."

He added that Coats was selected for its quality, service, brand recognition and global reach and that the deal would allow Coats to increase market share and offer contractors in Mexico, Central America and the Caribbean, full-service trim management.