Coats Group (COA)

Sector:

Financials

Index:

FTSE 250

94.80p
   
  • Change Today:
    -1.00p
  • 52 Week High: 104.20p
  • 52 Week Low: 66.00p
  • Currency: UK Pounds
  • Shares Issued: 1,597.81m
  • Volume: 1,895,831
  • Market Cap: £1,514.72m
  • RiskGrade: 39

Coats to raise £100m as it agrees to buy Rhenoflex

By Josh White

Date: Wednesday 10 Aug 2022

LONDON (ShareCast) - (Sharecast News) - Industrial thread maker Coats Group announced its intention to raise £100m after markets closed on Wednesday, to fund the acquisition of German footwear materials producer Rhenoflex.
The FTSE 250 company said the funds would be raised through an accelerated bookbuild, launched immediately following its late afternoon announcement.

It confirmed it had signed a "definitive agreement" to acquire Rhenoflex for an enterprise value of €115m (£97.05m).

Following the recent acquisition of Texon, Coats said Rhenoflex represented a "synergistic bolt-on acquisition" and a "unique opportunity" to strengthen its position as a global leader in footwear components.

It described "significant" value creation potential through cost synergies through efficiencies in procurement and back-office of $6m, incremental to the $5m in synergies from Texon, with combined synergies of $11m resulting from the two acquisitions.

The purchase price represented 9.3x of last-12-months EBITDA to June, and 6.2x on a post-synergy basis.

"We are delighted to announce the acquisition of Rhenoflex, which presents an exciting and synergistic opportunity for Coats to establish a leading global platform in footwear components, expanding our presence in the fast-growing athleisure footwear market," said chief executive officer Rajiv Sharma.

"Rhenoflex is a high quality business that is complementary to both Texon and Coats and its strategic focus on sustainability and innovation will significantly enhance our proposition to customers."

Coats said Citi and Peel Hunt would jointly conduct a bookbuilding, with the number of new shares to be issued under the placing, and the placing price, to be determined at the close of the process.

Its directors had each agreed to participate in the placing, subscribing for shares worth more than £325,000 between them.

The company said it had also separately engaged Peel Hunt to undertake an intermediary offer of new shares at the placing price, alongside the placing, to existing retail investors through its 'REX' platform.

Coats Group shares closed down 0.6% on Wednesday at 66.5p, before the announcement.

Reporting by Josh White at Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Coats Group Market Data

Currency UK Pounds
Share Price 94.80p
Change Today -1.00p
% Change -1.04 %
52 Week High 104.20p
52 Week Low 66.00p
Volume 1,895,831
Shares Issued 1,597.81m
Market Cap £1,514.72m
RiskGrade 39

Coats Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.39% below the market average86.39% below the market average86.39% below the market average86.39% below the market average86.39% below the market average
92.66% below the sector average92.66% below the sector average92.66% below the sector average92.66% below the sector average92.66% below the sector average
Price Trend
83.34% above the market average83.34% above the market average83.34% above the market average83.34% above the market average83.34% above the market average
73.45% above the sector average73.45% above the sector average73.45% above the sector average73.45% above the sector average73.45% above the sector average
Income
38.42% below the market average38.42% below the market average38.42% below the market average38.42% below the market average38.42% below the market average
72.31% below the sector average72.31% below the sector average72.31% below the sector average72.31% below the sector average72.31% below the sector average
Growth
35.4% below the market average35.4% below the market average35.4% below the market average35.4% below the market average35.4% below the market average
2.91% below the sector average2.91% below the sector average2.91% below the sector average2.91% below the sector average2.91% below the sector average

What The Brokers Say

Strong Buy 4
Buy 3
Neutral 2
Sell 0
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Coats Group Dividends

  Latest Previous
  Interim Final
Ex-Div 17-Oct-24 02-May-24
Paid 14-Nov-24 30-May-24
Amount 0.93¢ 1.99¢

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 1,058,656 @ 94.80p
16:35 2,008 @ 94.80p
16:35 3,321 @ 94.80p
16:35 403 @ 94.80p
16:35 1,605 @ 94.80p

Coats Group Key Personnel

Chair David Gosnell
CFO Jackie Callaway
CEO David Paja

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