British thread manufacturer Coats Group PLC (LSE:COA) has successfully completed a £92.2mln fundraising to buy footwear reinforcement company Rhenoflex.
The fundraising was priced at 63.5p, a slight discount to the 66.5p close price on Wednesday.
The FTSE 250-listed group said the purchase of the Germany-based company would be "highly complementary" to its acquisition last month of footwear-focused Texon.
Rhenoflex makes structural components for the premium footwear market, including heel counters, toe puffs, interlinings and eyelets, alongside sustainable material solutions for the luxury industry.
Shareholders supported the placing and retail offer for a total of 145mln new ordinary shares, comprising approximately 10% of prior share capital.
Coats, which is valued at close to £1bn, purchased footwear materials company Texon in July for an enterprise value of US$237mln.
Altogether, combined sales from Rhenoflex, Texon and Coats' existing footwear and accessories business would total around US$425mln over the twelve months to June 2022, in context with a total of US$1.5bn the group reported for its last full year.