Industrial thread maker Coats has acquired Patrick Yarn Mill, a US manufacturer of high-performance engineered yarns, in a move that will expand its performance materials portfolio and boost its innovation capabilities.
Patrick Yarn Mill specialises in cut-resistant and flame retardant yarns that are used in clothing, including denim and hosiery, as well as home furnishings and head resistance items. It also produces yarns from recycled fibres marketed under its Earthspun trademarks and with its large solar installation promotes its earth-friendly yarns as ‘Spun by the Sun’.
Founded in 1963, the company employs around 150, and in 2016 recorded annual sales of US$36.5m. Patrick Yarn Mill’s unique spinning competencies in engineered performance yarns will offer an opportunity to expand Coats’ existing performance materials portfolio as well as to extend its innovation capability.
Coats says it will support Patrick Yarn Mill’s expansion into high-growth markets by leveraging its own geographic footprint, breadth of global customer relationships and strong corporate brand. The purchase also shows Coats’ intent to grow via mergers and acquisitions in performance materials and services, two areas of strategic priority for the company.
“Patrick Yarn Mill is an exciting acquisition that supports a key aspect of our growth strategy: to identify innovation synergies that build scale in high technology sectors,” says Rajiv Sharma, group chief executive, Coats. “It is a dynamic, customer-focused company and its unique spinning systems combined with our existing technology portfolio will provide a strong market offering. We will be able to draw upon our demonstrable track record of successfully integrating bolt-on companies following our acquisitions in 2016, particularly that of Gotex, another company in this space, which is performing well under our ownership.”
The acquisition of Patrick Yarn Mill is the third for Coats in the last two years. Gotex, a Spanish company that designs and manufactures high-tech industrial yarns and tapes used in the telecommunications, energy and oil and gas sectors became part of performance materials in 2016. The company also bought FRS, a UK-based company that provides software solutions and expertise to improve operational efficiency and speed to market in apparel and footwear.
Gilbert Patrick, president, Patrick Yarn Mill, adds: “Patrick Yarn Mill becoming part of the Coats family creates many opportunities for both companies as there is a lot of synergy between our product offerings and technology. A key one is being able to leverage Coats’ unrivalled global footprint and strong corporate brand to accelerate market growth, which will benefit not only Patrick Yarn Mill, but also our employees and our community. The opportunity to collaborate with a market leader in areas such as innovation and R&D is extremely exciting and very positive, not only for Patrick Yarn Mill’s future but also for our customers’ future.”