Coats, the world’s leading industrial thread manufacturer, has sold its North America Crafts business to Spinrite, a provider of craft knitting yarns.
Approximately 560 North America Crafts employees will now become a part of Spinrite.
As per the deal, the manufacturing facility and distribution centre in Albany, and the sites in Toccoa and Douglas will transfer to Spinrite ownership.
The preliminary cash consideration payable at completion is US $ 37 million.
The sale includes the well known Crafts brands Red Heart, Coats & Clark, Aunt Lydia and Susan Bates. Anchor, Dual Duty XP and J&P Coats will be licensed for varying terms.
Rajiv Sharma, Group Chief Executive, Coats, said, “We are proud of our 120 years of crafts heritage in North America and the long association we have had with crafters but the crafting market has evolved in the past decade.”
“The crafts business requires a higher degree of specialisation, scale, innovation and digital capabilities to succeed. The sale of our standalone North America Crafts will have a stronger future with Spinrite,” he added.
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