Latest news with #DavidPaja
Yahoo
4 days ago
- Business
- Yahoo
Coats Group to Buy OrthoLite for $770 Million
Coats Group plc wants to expand its positioning as a supplier in footwear components. The British multinational company inked a deal to acquire premium insole leader OrthoLite Holdings LLC. The transaction, expected to close in the fourth quarter, has an initial enterprise value of $770 million — subject to certain projections such as cost synergies by 2028 and a contingent payment of up to $10 million based on potential EBITDA (earnings before interest, taxes, depreciation and amortization) performance in 2025. More from WWD Tariffs Give Parents Back-to-School Shoe Anxiety Trump Trade Deal Revealed: Indonesia Shoe Imports to US Will Face 19 Percent Tariff Rate EXCLUSIVE: Diesel and Melissa Team on Futuristic Footwear Collection With Genderless Sneaker and More Styles The deal would accelerate Coats' strategy for its Coats Footwear division to become a 'super tier 2' supplier in footwear components through its entrance into the fast-growing open-cell premium insole market. The acquisition include OrthoLite and Cirql. Ortholite, founded in 1997 by Glenn Barrett, is the global market leader in open-cell foam insoles with a 36 percent market share. The segment is considered to have strong tailwinds for growth due to the open-cell technology's superior benefits in comfort, performance and sustainability. Ortholite supplies over 500 million pairs of insoles each year to 500 brand customers. It has more than 310 co-branding agreements, as well as a strategically located global footprint of 14 production facilities. Cirql has a newly developed proprietary foam technology targeting the midsole market, using a biodegradable or fully recyclable offering. The technology, secured by over 80 patents, is in the early stages of commercial development, with over $30 million invested to date by its previous owners. Coats said it will further develop the commercialization plan, with the estimated costs to deliver the business to profitability deducted from the consideration paid to the seller. Ongoing costs are expected to be $1.5 million per quarter, with a break-even position expected to be achieved in 2026. 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry. It brings together two global leaders in adjacent segments of the footwear components sector with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships,' Coats CEO David Paja said. 'We look forward to working with Glenn Barrett and the OrthoLite team, leveraging our combined strengths to reshape the future of the footwear components industry.' 'This alliance forms a powerful partnership of industry leaders to provide a platform for OrthoLite and Cirql to continue to serve our customers with the most innovative and sustainable components in the world,' Barrett said. Coats said it plans to fund the acquisition through a combination of new debt facilities with its existing lenders and proceeds from an equity placement of up to 19.99 percent of issued shares. It said it also plans a new offering of common stock to retail investors. The company said the acquisition will improve the overall quality of Coats' earnings, shifting the balance toward its high growth, high margin footwear segment. Coats also said that it has identified initial joint annualized cost synergies of $20 million that it expects to achieve by 2028, with additional growth by the merged entities fueled by cross-sell opportunities and the upside potential from Cirql. Trilantic Capital Management in July 2017 acquired its stake in OrthoLite from Blue Point Capital Partners, which made its initial investment in April 2014. Trilantic last year hired William Blair as its banker to explore a sale of the Amherst, Mass.-based insole foam manufacturer. Barrett retains a minority stake in the company. Both private equity transactions were completed in partnership with OrthoLite's management team. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Coats acquires OrthoLite to drive Tier 2 footwear material supply ambition
Coats said the acquisition of OrthoLite 'represents a compelling strategic fit and a unique opportunity to establish Coats as a global leader in the supply of materials to the footwear industry, building upon an already successful footwear business and adding even greater value for our customers.' OrthoLite is a market leader in insole open-cell foam technology, which delivers superior benefits in comfort, performance, and sustainability. The acquisition includes Cirql, a newly developed proprietary foam technology launched earlier this year that targets the midsole market with a biodegradable or fully recyclable offering. This combination provides Coats with a unique strategic opportunity to reinforce its position as a global leader in the footwear market. OrthoLite's strategic focus on sustainability, together with its reputation as a technology leader, will further enhance its portfolio of innovative offerings and strengthen its customer proposition to leading footwear brands. David Paja, Coats Group CEO said: 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry. It brings together two global leaders in adjacent segments of the footwear components market with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships. We look forward to working with Glenn Barrett and the OrthoLite team, leveraging our combined strengths to reshape the future of the footwear components industry.' Glenn Barrett, founder and CEO of OrthoLite added: 'This alliance forms a powerful partnership of industry leaders to provide a platform for OrthoLite and Cirql to continue to serve our customers with the most innovative and sustainable footwear components in the world.' "Coats acquires OrthoLite to drive Tier 2 footwear material supply ambition" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Coats to buy US insole maker for brands including Adidas and Asics for £573m
London-listed footwear manufacturer Coats has agreed to buy a US company that makes premium shoe insoles for 770 million US dollars (£573 million). The company said acquiring OrthoLite means it is bringing together two 'global leaders' in the industry. OrthoLite makes open-cell foam insoles, designed to be a more comfortable and sustainable lining for shoes, for a swathe of shoemakers including Adidas, Nike, Converse and Asics. It has more than a third share of the market and supplies about 500 million pairs of insoles a year to around 550 brands. Coats, which is listed on London's FTSE 250 index, is a global specialist in thread manufacturing and making components for clothes and footwear. It said it had agreed to buy OrthoLite for an enterprise value of 770 million US dollars. The acquisition will be funded through a combination of new debt facilities with its existing lenders and by raising funds from issuing new shares to investors. Coats said it would benefit from expanding into the fast-growing premium insole market where there is a big overlap with its existing footwear customers. 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry,' chief executive David Paja said. 'It brings together two global leaders in adjacent segments of the footwear components sector with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
4 days ago
- Business
- Fashion United
Coats Group acquires OrthoLite for 770 million dollars
British manufacturing firm Coats Group has entered an agreement to acquire OrthoLite Holdings LLC for 770 million dollars. The deal intends to create 'a 'super tier 2' supplier for footwear components', while helping Coats expand into the 'high growth insole segment'. The transaction, which is expected to close in Q4 2025, was funded through a combination of new debt facilities with existing lenders and the proceeds of an equity placing. Coats said 'compelling financial returns' are anticipated. OrthoLite is a US company specialising in insole open-cell foam technology for footwear. Through its acquisition, Coats will also take ownership of Cirql, a newly developed proprietary foam technology OrthoLite launched earlier this year targeting the midsole market. Coats said that OrthoLite's offering is a 'highly complementary addition' to its portfolio, aligning on consumer base, route-to-market and sustainability values, thus making it a 'compelling strategic fit'. The group further sees the acquisition as an opportunity to 'reinforce its position as global leader in the footwear market'. In a statement, David Paja, Coats' chief executive officer, said: 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry. It brings together two global leaders in adjacent segments of the footwear components market with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships.'
The Independent
5 days ago
- Business
- The Independent
Coats to buy US insole maker for brands including Adidas and Asics for £573m
London-listed footwear manufacturer Coats has agreed to buy a US company that makes premium shoe insoles for 770 million US dollars (£573 million). The company said acquiring OrthoLite means it is bringing together two 'global leaders' in the industry. OrthoLite makes open-cell foam insoles, designed to be a more comfortable and sustainable lining for shoes, for a swathe of shoemakers including Adidas, Nike, Converse and Asics. It has more than a third share of the market and supplies about 500 million pairs of insoles a year to around 550 brands. Coats, which is listed on London's FTSE 250 index, is a global specialist in thread manufacturing and making components for clothes and footwear. It said it had agreed to buy OrthoLite for an enterprise value of 770 million US dollars. The acquisition will be funded through a combination of new debt facilities with its existing lenders and by raising funds from issuing new shares to investors. Coats said it would benefit from expanding into the fast-growing premium insole market where there is a big overlap with its existing footwear customers. 'The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry,' chief executive David Paja said. 'It brings together two global leaders in adjacent segments of the footwear components sector with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships.'
