Coats is on acquisition spree
Coats, the world’s leading industrial thread manufacturer, has acquired Gotex, a Spanish based company which designs and manufactures high performance fibres, yarns and tapes used in the telecommunications, energy and oil and gas sectors, as well as Fast React Systems, a UK based company which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in the apparel and footwear industries. Fast React Systems becomes part of Coats Global Services (CGS)
Coats has acquired 100 % of Gotex which becomes part of Coats Speciality with immediate effect.
Gotex’s unique fibreglass coating technology and products will complement Coats’ existing coated aramid product range. There is much synergy between the product offerings and together, the companies will be able to provide an enhanced range of products to the fibre optics cable industry. The acquisition reinforces Coats’ strategy of expanding into value added engineered yarns.
Gotex is headquartered near Barcelona, Spain and has approximately 60 employees. It has three main categories of products:
– Technical yarns – yarns transformed via unique and proprietary coating technologies, used in the cable industry to reinforce, insulate and protect optical fibres.
– Technical woven tapes – woven high technical fibres, such as fibreglass, aramid or carbon used to protect cables from impacts, rodents, etc and in composites.
– Product trading – buying and selling additional products that cannot be manufactured in-house egmica tapes, FRP rods, plastic films.
Its core customer base is fibre optic cable manufacturers, although oil and gas flexible pipe producers and high tech sports equipment manufacturers are also growing areas.
Paul Forman, Group Chief Executive, Coats, said: ‘Gotex is an exciting first acquisition for our Speciality business that is fully aligned with our growth strategy; a global market leader in developing and producing innovative, high performance materials that complement our existing product portfolio. It is an ideal fit with our Speciality business.’
David Ferré, Managing Director, Gotex, said: ‘This offers great opportunity both for Gotex and our customers. It provides a way to accelerate our business growth and further develop our brand through significantly enhanced market strength and opportunity, as well as prospects for product collaboration with a global market leader.’
The acquisition of Gotex follows the highly successful acquisition of GSD Corporate Ltd in May 2015 and also, more recently, Fast React Systems in May 2016. These three deals show Coats’ intent to grow via M&A in Speciality and Services, two areas of strategic priority.
Coats acquires also Fast React Systems
Coats, has also acquired Fast React Systems, a UK based company which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in the apparel and footwear industries. Fast React Systems becomes part of Coats Global Services (CGS).
Fast React Systems has 76 employees spread across six countries. It is based in Derby, UK where half of its employees are based. In addition it has employees in Bangladesh, Sri Lanka, China, Thailand, Korea and Hong Kong.
Fast React Systems has three core products:
– Evolve is a visual and flexible, ‘drag and drop’ planning tool that allows fast and accurate scheduling of manufacturing lines, machines, and supporting processes. The Evolve solution brings together the essential elements of capacity, critical path and materials into a single solution and provides a vital management tool as much as a planning tool.
– Vision is an extended PLM solution, designed to manage all key processes for the design, development and purchasing and tracking stages of the apparel supply chain.
– Align is a visual planning and management tool for co-ordinating textile production, ie, a capacity planning and modelling software solution that allows textile mills to match demand against available capacity, manage their commitments and improve the order confirmation process, work-in-progress and inventory levels.
Paul Forman, Group Chief Executive, Coats, said: ‘This is an excellent fit with Coats Global Services. We are seeing a growth in demand from our customers for value added services in operational efficiency so there is a strong synergy between Fast React Systems’ products and the CGS offering. We share a footprint of both existing and target customers and together, we can provide an even wider and more attractive product portfolio.’
Andrew Brown, Group Managing Director, Fast React Systems, said: ‘This is a huge opportunity for our products, customers and employees. The combination of our technical expertise with the global reach and also the customer and brand relationships of Coats marks the start of an exciting new phase in our development.’
Coats Global Services was launched in 2013 in response to customer demand. It provides the sewn product industries with expert insights, technical guidance and practical solutions to realise productivity improvements across the supply chain.
The acquisition of Fast React Systems follows the acquisition by Coats of GSD Corporate Ltd in May 2015, and enables Coats Global Services to offer an even wider range of productivity improvement tools. GSD Corporate Ltd is a UK based company supplying expert management solutions that analyse time, cost and production capability in the sewn products sector with the focus on maximising productivity and controlling costs.
GSD and Fast React Systems, together provide two of the most established and fundamental building blocks for improving productivity and operational efficiency in a fashion manufacturing business.