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Fashion & brands

Coats acquires US yarns manufacturer Pharr

The acquisition was completed for US$37mln using operating cash flows and existing debt facilities

Coats Group PLC (LON:COA) has completed the acquisition of US high-performance engineered yarns Pharr HP for US$37mln.

Originally announced in November, the FTSE 250-listed industrial thread producer said will fund the transaction with operating cash flows and existing debt facilities.

READ: Coats Group unravels after profit warning

Last financial year Pharr posted sales of US$110mln and adjusted underlying earnings (EBITDA) of US$5mln.

Founded in 1939, it specialises in providing technical yarn solutions to markets such as industrial thermal protection, defence and fire service.

Coats, which is the second-largest manufacturer of zips and fasteners in the world, said the acquisition adds to its personal protection business.

Shares rose 1% to 72.82p on Tuesday at the opening bell.

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