Coats buys Asia's ThreadSol for up to $12m

Industrial thread maker Coats said it had bought Asia-based material planning company ThreadSol for up to $12m in cash.

ThreadSol's cloud-based digital applications help clothing and footwear companies minimise waste.

“This complementary suite of software solutions for the apparel and footwear industries will enable brands, retailers and manufacturers to drive productivity gains, supply chain control and speed to market,” Coats said.

The initial payment is $5m, with further payments of up to $7m to 2022.

Coats chief executive Rajiv Sharma said: “ThreadSol is an exciting acquisition that supports a key aspect of our growth strategy: to build an innovative software solutions business for the apparel and footwear industries.”

“We will be able to draw upon our demonstrable track record of successfully integrating bolt-on companies following the acquisitions of Patrick Yarn Mill, Gotex and Fast React Systems, all of which are performing well under our ownership.”