Sale of EMEA Crafts Business

RNS Number : 3961F

Guinness Peat Group PLC

19 February 2015

 



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           [phone]

New Zealand and Australian media                      Geoff Senescall             [phone]

Investors                                                           Jaideep Thatai               [phone]

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

 

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