Coats has announced on Tuesday that it has become a strategic investor in Israeli based technology start-up Twine Solutions.
The world’s leading industrial thread manufacturer invested in the start-up due to its revolutionary digital thread dyeing system.
Twine Solutions was founded in 2015 in Israel by two brothers with an extensive digital printing expertise. It currently employs 40 full-time workers and is situated just outside of Tel Aviv.
Under the agreement, Coats will invest $5 million for a 9.5% share in the company and a seat on the Board. Coats’ Michael Schofer, the Chief Supply Chain Officer, will be taking the seat on the Twine Board. Both companies will now work together on an exclusive commercial partnership to market the technology and launch it next year.
Twine has created the world’s first ever standalone digital threat dyeing system, appealing to Coats’ portfolio.
In the first quarter of the year, the group saw a 5% jump in its sales following a strong performance in its industrial division.
Group Chief Executive, Rajiv Sharma, commented on the partnership:
“This is an exciting and innovative strategic move. We are investing in future technology which will improve our industry and its sustainability by directly addressing the key needs of our customers: speed, innovation and sustainability. The disruptive technology has the potential to revolutionise the thread industry and Coats will work closely with Twine to commercialise this opportunity.”
Additionally, Twine’s CEO Alon Moshe said:
“We are bringing high tech to a low tech industry by providing a unique solution to the most basic problem for one of the largest and oldest industries. To have the world’s leading industrial thread manufacturer as a backer brings immeasurable strength and opportunity to our offer.”
Other market news on Tuesday includes Rentokil Initial’s announcement of a £1.5 billion pension scheme deal. Elsewhere, Wizz Air reported a jump in its passenger numbers of 11%.
At 09:15 today, shares in Coats Group plc (LON:COA) were trading at -0.12%.
