United Kingdom : Leading thread manufacturer Coats enters FTSE 250 list

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Leading thread manufacturer Coats enters FTSE 250 list

01
Jun '17

Courtesy: Coats

Coats, the world’s leading industrial thread manufacturer, is set to enter the FTSE 250, a list of the 101st to the 350th largest companies listed on the London Stock Exchange. The latest quarterly review by FTSE Russell, the global index provider, confirms that Coats has met the requisite criteria and will enter the FTSE 250 with effect from June 19, 2017.

Coats, which was a founding member of the FT 30 index created in 1935 and was also once the third largest company in the world, has undergone significant corporate change in recent years in order to help reach the strategic objective of entering the FTSE 250. Previously owned by the Guinness Peat Group it returned to listed status in February 2015. This also comes after Coats market capitalisation reaching in excess of £1 billion last week.

In June 2016, the company delisted from both the Australian and New Zealand stock exchanges. This helped concentrate trading volumes on the UK market and also supported the repositioning of Coats as a UK headquartered, global industrial manufacturing business. In December 2016, the UK Pensions Regulator confirmed it would cease regulatory action for two pensions schemes following Coats signing heads of terms with the Trustees. Yet another key step was made earlier this year, in February, when Coats announced its intention to return to the dividend list.

In May 2015, Coats acquired GSD, a UK based supplier of management solutions that analyse time, cost, and production capability in the sewn products sector. In June 2016, it acquired Fast React Systems, which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in apparel and footwear sector.

Also in June 2016, Coats acquired Gotex, a Spanish based company which designs and manufactures high performance fibres, yarns, and tapes used in the telecommunications, energy and oil and gas sectors. This was the first acquisition for the Performance Materials part of the business. All three acquisitions have proved highly successful with the companies each outperforming their post-acquisition targets.

Rajiv Sharma, group chief executive, Coats said, “This is excellent news for our employees, shareholders, and customers and is the culmination of an intense period of corporate transformation. Thanks go to our 19,000 employees for delivering strong operational results.” (GK)

Fibre2Fashion News Desk – India

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