Coats fattens his portfolio. The British spinning group has acquired Rhenoflex, a German company specializing in sustainable reinforcement solutions for the footwear and accessories industry, through an operation whose amount has not been revealed.
“This acquisition represents a strategic opportunity for Coats to establish itself as a leading global platform for footwear components and strengthen its position worldwide,” Coats CEO Rajiv Sharma said in a statement.
Rhenoflex is specialized in the supply of high performance footwear components, including heel counters, toe boxes, interlinings and eyelets, along with sustainable backing material solutions for the luxury industry. The company, founded in 1952, operates on a global scale through factories located in Vietnam, China and Germany.
Coats plans to strengthen its position as a leading platform for footwear components following the acquisition of Rhenoflex
The origins of Coats go back to the late 18th century, when the Clark and Coats families separately started their activity in the textile and weaving industry in Paisley, Scotland. In 1890, Coats made the leap to the London Stock Exchange and, six years later, merged with Clark, creating the giant J&P Coats, which became one of the largest companies in the world by capitalization.
Coats began a profound restructuring in the midst of the globalization of the textile industry. In 2015, the group returned to the trading floor and embarked on a new stage of growth with purchases such as the software Fast React Systems, the Spanish Gotex or the American Patrick Yarn Mill, specialized in spinning.
The group closed the first half of the year, ended on June 30, with sales of 801 million dollars, 14% more than what was recorded in the same period of the previous year. Between January and June, the company’s operating profit stood at 111 million dollars, registering a year-on-year increase of 19%. In 2021, Coats sales grew 29% to $1,504 million.