Industrial thread manufacturer Coats Group (LON: COA) has made a second acquisition in six weeks. Coats is acquiring Germany-based Rhenoflex for an enterprise value of $117m and this should enhance medium-term earnings.
Rhenoflex trading is back above pre-Covid levels, even though supply chain problems have held back progress. In the year to June 2022, revenues were $76m and operating profit was $10.1m. There could be $6m of cost benefits from the acquisition that will help to improve margins.
There are factories in China, Vietnam and Germany and there is capacity of $100m. Adidas and N...
