Coats, a leading industrial thread manufacturer and a major player in the Americas textile crafts market, is to enter the FTSE 250. The latest quarterly review by FTSE Russell, the global index provider, confirmed that Coats has met the requisite criteria and will enter the FTSE 250 with effect from 19 June. This comes after Coats market capitalisation reaching in excess of £1 billion last week.

Coats, which was a founding member of the FT 30 index created in 1935 and was also once the third largest company in the world, has undergone significant corporate change in recent years in order to help reach the strategic objective of entering the FTSE 250.

“This is excellent news for our employees, shareholders and customers and is the culmination of an intense period of corporate transformation. Thanks go to our 19,000 employees for delivering strong operational results,” said Rajiv Sharma, Group Chief Executive, Coats.

Strategic repositioning

“Previously owned by the Guinness Peat Group it returned to listed status in February 2015. What then followed was a series of unprecedented major steps that together have led to its normalisation as a listed company,” the company explains.

In June 2016, it delisted from both the Australian and New Zealand stock exchanges. This helped concentrate trading volumes on the UK market and also supported the repositioning of Coats as a UK headquartered, global industrial manufacturing business, the manufacturer reports.

In December 2016, the UK Pensions Regulator confirmed it would cease regulatory action for two pensions schemes following Coats signing heads of terms with the Trustees. Yet another step was made earlier this year, in February, when Coats announced its intention to return to the dividend list.

Appointments and acquisitions

Other steps in the corporate transformation of Coats include the appointment of Rajiv Sharma as Group Chief Executive, January 2017; the appointment of Simon Boddie as Chief Financial Officer, July 2016; and the completion of three acquisitions.

In May 2015, it acquired GSD, a UK based supplier of management solutions that analyse time, cost and production capability in the sewn products sector. In June 2016, it acquired Fast React Systems, which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in apparel and footwear sector.

Also in June 2016, Coats acquired Gotex, a Spanish based company which designs and manufactures high performance fibres, yarns and tapes used in the telecommunications, energy and oil and gas sectors. This was the first acquisition for the Performance Materials part of the business.

www.coats.com