Thread maker Coats Cadena left Argentina and Brazil.
British thread and yarn manufacturer Coats Group agreed to selling its operations in Argentina and Brazil to the company Reelpar, a company supported by an investment fund from São Paulo. He did not say how much he received for his affiliates. But yes It will give the buyer US $ 10 million to repair them.
“The decision to sell the businesses of Coats Brazil and Argentina was not lightly ignored, primarily because of Coats’ heritage in these countries, ”the firm said in a statement. In Brazil, the company is over 100 years old and in Argentina he is the heir of “Chain” threads.
The company’s release is related to the plan, which was announced in March, to strengthen their most profitable businesses. It will now focus on Asia, Europe, North and Central America. In the region, it will only retain one subsidiary in Colombia.
So, without the burden of two subsidiaries in South America, the company said it would an annual increase of 0.50 percentage points in its operating margins.
Coat’s will fund the new owners with US $ 10 million to carry out the reorganization of businesses in Argentina and Brazil.
The London-listed industrial yarn maker expects to close the deal this month.
Rajiv Sharma, CEO of Coats, said that “for the business to thrive in Brazil and Argentina in the future, it needs recreate yourself to meet the specific needs of local markets. With this in mind, we feel that is the best decision for safeguard the future of the organization is to sell the business to new owners will focus only on local markets “
As they said in the statement, Reelpar has experience with make local businesses profitable and well positioned and connected to the driving of Coats Brazil and Argentina. In the country, Coats is based in La Cantábrica industrial park, in Haedo.
Coats is the industrial thread company with subsidiaries in about 50 countries and more than 18,000 employees. In 2021, the company turnover of US $ 1,500 million. In addition to Cadena, in the country they have brands Cisne (wool), Duet and Drima, among others.
NE
Source: Clarin
