British technical yarns manufacturer Coat has acquired engineering materials maker Texon for $237 million to strengthen its presence in the athletic footwear market.
Texon, a business focused on sustainable innovation, has been supplying the athletic footwear market with high-quality structural shoe components such as heel counters, toe caps and insoles for over 75 years. The company is present in Asia and Europe and will be a good addition to Coats' footwear business.
The acquisition is expected to increase the company's profits in its first year and generate annual synergies of approximately $5 million by the end of its second full year of ownership through improved efficiency in commercial operations, purchasing, marketing, distribution and manufacturing.
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