Canadian craft products maker Spinrite Acquisition Corp., a unit of craft yarn maker Spinrite LP., plans to acquire the non-core North America (NA) crafts segment owned by UK-based industrial thread manufacturer Coats Group PLC.
Under the deal, Coats Group will receive $37 million in cash from Spinrite Acquisition for its business and will initially be used to reduce its net debt.
The divestment enhances Coats Group to focus completely on its high performing business to business global apparel and footwear, and performance materials businesses.
The acquisition is expected to complete during the coming weeks, subject to customary closing conditions.