Coats Group plc now has an expanded position as a tier 2 supplier of shoe components.
Following the completion of its $770 million transaction to acquire premium insole brand OrthoLite Holdings LLC, Coats can now lay claim as a “super tier 2” supplier in footwear components. The deal includes OrthoLite and Cirql. The transaction was announced in July.
“OrthoLite is one of the world’s most innovative manufacturers in footwear materials. With our combined capabilities, we’ll now be able to offer our customers more future-focused solutions for more of the shoe — without compromising on the trusted quality both companies stand for,” David Paja, Coats Group CEO, said.
OrthoLite founder and CEO Glenn Barrett will join Coats and continue to oversee the OrthoLite business.
“I’m confident this move will bring even more value and opportunity for our customers and our people, while still delivering the great partnership and collaboration we’ve taken pride in over the years,” Barrett said.
Coats said that the deal represents a major milestone in its long-term growth plans, while strengthening the existing footwear division as its expands into the high-growth premium insole market. It also noted that both companies have a “similar customer base, a complementary footprint and a commitment to industry-leading innovation and sustainability practices.”
With the transaction completed, Coats is also shifting it three-division organizational structure. Previously apparel, footwear and performance materials, the company now has a simplified two-division structure focused on apparel and footwear. The existing performance materials group will be folded into the apparel and footwear divisions.
Coats said that Pasquale Abruzzese will lead footwear as the division’s CEO and group chief operating officer, while Adrian Elliott will head up the apparel division as its CEO and group chief commercial officer.
Barrett founded OrthoLite in 1997. It has become the global market leader in open-cell foam insoles with a 36 percent market share. The expectation is that the segment has strong tailwinds for growth due to the open-cell technology’s superior benefits in comfort, performance and sustainability.
OrthoLite’s Cirql has newly developed proprietary foam technology targeting the midsole market, using a biodegradable or fully recyclable offering. The technology is secured by over 80 patents, and is still in the early stages of commercial development.
A look at a new scalable and fully recyclable midsole created by OrthoLite subsidiary, Cirql.
Courtesy of Cirql