COATS GROUP PLC
GPG
20/02/2015 08:31
ASSET
PRICE SENSITIVE
REL: 0831 HRS Guinness Peat Group Plc
ASSET: GPG: Sale of EMEA Crafts Business
19 February 2015
Guinness Peat Group plc
('GPG' or 'the Company')
Sale of EMEA Crafts business
GPG today announces that its sole operating business Coats plc ('Coats') has
agreed to sell its EMEA Crafts business ('EMEA Crafts') to AURELIUS Group.
Highlights:
- Coats announced a strategy review of EMEA Crafts in August 2014
- The sale allows Coats to focus attention on its high performing global
Industrial and strong Americas Crafts businesses
- The total consideration of US$10.0 million is payable in cash on completion
subject to customary adjustments
- Coats intends to use the proceeds for general corporate purposes
- The sale is conditional upon, inter alia, a limited number of conditions
usual for this type of transaction and is expected to complete in the second
quarter of 2015
Commenting on the transaction, Paul Forman, Group Chief Executive of Coats,
said:
'The agreement to sell EMEA Crafts follows a comprehensive review of the
business, including its strategic fit within Coats, and the formulation of a
turnaround plan. The decision to sell the EMEA Crafts business better
positions Coats for future profitable growth and allows us to focus
management attention on our high performing global Industrial and strong
Americas Crafts businesses.'
Enquiry details
UK media Richard Mountain +44 20 3727 1374
New Zealand and Australian media Geoff Senescall +64 9 309 5659
Investors Jaideep Thatai +44 20 8210 5086
About EMEA Crafts
EMEA Crafts is a leading player in the European textile crafts market
focusing on Handknitting, Needlecraft and Lifestyle Fabric products. The
business supplies a range of highly-respected brands including Schachenmayer,
Patons, Rowan and Regia.
For the year ended 31 December 2013, the EMEA Crafts business being sold
recorded sales of US$150.8 million and an operating profit (pre-exceptional
items) of $0.7 million. For the half year ended 30 June 2014, the business
generated sales of $62.3 million and an operating loss (pre-exceptional
items) of $7.2 million. At 30 June 2014 EMEA Crafts' gross assets were $142
million and net tangible assets were approximately $75 million. Results for
the year ended 31 December 2014 will be included in GPG's 2014 preliminary
results to be issued on 26 February 2015.
About Coats
With a rich heritage dating back to the 1750s, Coats is the world's leading
industrial thread and consumer textile crafts business, at home in more than
70 countries, employing approximately 20,000 people across six continents.
Revenues in 2013 were US$1.7bn.
Our well-known brands and strong relationships with customers and consumers
mean our products and services meet current and future needs. Our
company-wide understanding of our business partners and consumers, coupled
with the deep expertise of our people, builds trust and certainty.
Coats' pioneering history and innovative culture ensure the company continues
leading the way around the world: providing complementary and value added
products and services to the apparel and footwear industries; extending the
crafts offer into new markets and online; and applying innovative techniques
to develop products in new areas such as tracer threads, aramids and fibre
optics.
To find out more about Coats visit www.coats.com
End CA:00260889 For:GPG Type:ASSET Time:2015-02-20 08:31:20
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