(Reuters) -British thread manufacturer Coats Group said on Wednesday it would buy U.S.-based footwear insole maker OrthoLite for $770 million, including debt.
The deal is expected to deliver $20 million in annual savings by 2028, Coats said.
OrthoLite holds a 36% share of the global open-cell foam insole market, supplying more than 500 million pairs a year to around 550 brand customers and has over 310 co-branding agreements.
The acquisition is expected to boost Coats’ operating profit margin and earnings per share from the first full year of ownership.
Coats’ footwear division reported 403 million pounds in revenue for fiscal year 2024, according to the company’s annual report.
($1 = 0.7441 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Shilpi Majumdar)
