BDA Partners is pleased to announce that its client, Coats Group plc (“Coats”), the world’s leading industrial thread and global footwear component manufacturer, has entered into an agreement to sell its European Zips business to Aequita. The transaction is expected to complete in Q3 2023, following carve out activities. The European Zips business is a world leading zipper manufacturer, with production facilities located in Italy, Germany, Estonia and Turkey. It focuses on high quality, custom and niche zippers, including luxury, automotive and technical applications. The business has a leading position within the sustainable zipper segment.
An exit from European Zips is in line with Coats’ strategic initiatives which were announced in March 2022. The strategy optimises the Company’s portfolio and footprint, and improves the overall cost base efficiency.
BDA acted as exclusive financial advisor to Coats on the transaction.
Sonal Arora, Managing Director of Group Strategy at Coats, said: “We are pleased to announce the divestment of the Zips business, which is in line with Coats’ strategy to simplify the portfolio and increase focus on core operations. We wish the business and its new owners every success in the future. BDA’s cross border expertise was instrumental in delivering an effective outcome.”
Jonathan Aiken, Partner, Head BDA London, added: “This transaction reaffirms BDA’s continued expertise in executing cross-border carve-outs. We are pleased to have supported Coats on this non-core divestment and wish the management and employees well under new ownership.”
BDA Deal team:
Jonathan Aiken, Partner, Head of London
Ruari Sinclair, Director, London
Nils Weng, Associate, London
Diane Zarka, Analyst, London
About the European Zips business
The business is a leading manufacturer of zippers for custom and niche solutions, including luxury, automotive and technical applications. With four facilities spanning Europe, the company provides industry-leading quality and sustainable zippers to blue-chip customers.
About Coats Group PLC
Coats is a world leader in thread manufacturing and structural components for apparel and footwear, as well as an innovative pioneer in performance materials. These critical solutions are used to create a wide range of products, including ones that provide safety and protection for people, data, and the environment. Headquartered in the UK, Coats is a FTSE250 company and a FTSE4Good Index constituent. Revenues in 2022 were $1.6bn.
Trusted by the world’s leading companies to deliver vital, innovative, and sustainable solutions, Coats provides value-adding products, including apparel, accessory and footwear threads, structural components for footwear and accessories, fabrics, yarns, and software applications. Customer partners include companies from the apparel, footwear, automotive, telecoms, personal protection, and outdoor goods industries.
With a proud heritage dating back more than 250 years and a spirit of evolution to constantly stay ahead of changing market needs, Coats has operations across some 50 countries with a workforce of over 17,000, serving its customers worldwide. Coats connects talent, textiles, and technology to make a better and more sustainable world. Worldwide, there are three dedicated Coats Innovation Hubs, where experts collaborate with partners to create the materials and products of tomorrow. It participates in the UN Global Compact and is committed to science-based sustainability targets for 2030 and beyond, with a goal of achieving net-zero by 2050. Coats is also committed to achieving its goals in Diversity, Equity & Inclusion, workplace health & safety, employee & community wellbeing, and supplier social performance.
To find out more about Coats, visit www.coats.com.
About Aequita
Aequita is a Munich-based family office investing in special situations including corporate carve-outs, successions, and transformational situations across Europe. Its current portfolio spreads across the automotive, industrial goods and construction industries with EUR 1.5 billion in revenues. With a strong capital base, entrepreneurial expertise and a partnership approach, the team focuses on the acquisition and long-term value enhancement of companies that can benefit from an operational engagement.
About BDA Partners
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes. BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
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