Coats sells Brazil, Argentina business for undisclosed sum

UK-based thread maker Coats Group said it had sold its Brazil and Argentina business to Reelpar, an entity backed by a Sao Paulo private equity firm, for an undisclosed sum.

The deal is expected to complete in May, Coats said on Tuesday, adding that it would add around 50 basis points to the group's adjusted operating margins.

Under the terms of the disposal, Coats will fund $10m to support restructuring of the business.

An exit from Brazil and Argentina is in line with Coats' strategic initiatives, announced in March, to accelerate profitable sales growth and transform the company, the company said in a statement.