Coats buys US yarn maker for up to $25m

Global thread maker Coats said it had bought US specialiast yarn manufacturer Patrick Yarn Mill for $21m with a further $4m on the table subject to performance targets over three years to 2020.

It added that the purchase would be funded from operating cash flows and existing debt facilities.

North Carolina-based Patrick Yarn Mill makes high-performance engineered yarns, specialising in cut-resistant and flame retardant yarns.

Patrick Yarn's 2016 annual sales were $36.5m. Coats said the acquisition offered an opportunity to expand its existing performance materials portfolio as well as to extend its innovation capability.