Coats Group acquires two European companies

Company News

by David Chau

Coats Group plc (ASX:CGW) has recently acquired two European companies, Gotex SA and Fast React Systems Limited.

Gotex is a Spanish company which designs and manufactures fibreglass industrial yarns. Gotex’s products are used to reinforce and insulate cables and pipes in the telecommunications, energy and oil and gas sectors.

Coats Group will pay Gotex US$ 28 million initially, with a further $4 million payment after two years, contingent on Gotex achieving certain performance targets.

On the other hand, UK-based Fast React provides software solutions to manufacturers and retailers in the apparel and footwear industries.

Coats Group will pay Fast React US$ 9 million initially, with further payments up to $4 million depending on Fast React’s achieving performance targets.

Coats Group reported a net loss of $79.9 million at 31 December 2015.

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