Coats Group launches retail offer to fund OrthoLite acquisition

Published 16/07/2025, 16:56
Coats Group launches retail offer to fund OrthoLite acquisition

LONDON - Coats Group plc (LSE:LON:COA), a manufacturer of industrial thread and footwear components, announced Wednesday a retail offer of new ordinary shares to help fund its acquisition of OrthoLite Holdings LLC.

The company has signed a definitive agreement to acquire OrthoLite for an enterprise value of $770 million, according to a press release statement. The acquisition aims to strengthen Coats’ footwear business by expanding into the premium insole segment.

The retail offer is being conducted through the RetailBook platform alongside a non-pre-emptive placing of new shares through an accelerated bookbuild. The issue price for the retail offer shares will be determined at the close of the bookbuilding process and will be equal to the placing price.

UK investors can participate through RetailBook’s partner network of retail brokers and investment platforms, including AJ Bell, Hargreaves (LON:HRGV) Lansdown, and interactive investor. Applications can be made from ISAs, SIPPs, or general investment accounts with a minimum subscription of £50 per investor.

The company stated that certain directors intend to participate in the placing to an aggregate value of approximately £500,000.

The net proceeds from the capital raise will partially fund the cash consideration for the acquisition, with the remainder to be financed through new debt facilities with Coats’ existing lenders.

Settlement for the retail offer shares and admission to the Official List of the Financial Conduct Authority are expected to take place on or before July 21, 2025. The retail offer is conditional upon completion of the placing.

Coats Group indicated that while the placing was structured as a non-pre-emptive offer to minimize costs and time to completion, the retail offer provides an opportunity for retail and other interested investors in the United Kingdom (TADAWUL:4280) to participate.

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