Coats moves to acquire OrthoLite
Coats Group has reached a definitive agreement to acquire insole materials manufacturer OrthoLite. In a statement to the London Stock Exchange, Coats gave an initial value of $770 million for the deal.
This could rise by a further $10 million depending on OrthoLite’s revenues in 2025. OrthoLite has confirmed that its open-cell foam technology brand Cirql is also part of the deal.
Coats said it believes bringing OrthoLite into the group will also offer the opportunity to make $20 million in annual cost savings by 2028. It expects to close the deal in the fourth quarter of 2025.
Following its acquisition of Texon and Rhenoflex in 2022, Coats developed a strategy to become what it has called a “super tier-two supplier for footwear components”. It said its acquisition now of OrthoLite represented a “compelling strategic fit” and would accelerate this plan, “significantly strengthening the existing Coats footwear business through expansion into the attractive, high-growth premium insole segment”.
Group chief executive, David Paja, said the combination of Coats and OrthoLite was “fantastic news” for both companies and for the footwear industry. “It brings together two global leaders with a shared vision for innovation and sustainability,” he added.
For his part, OrthoLite founder and chief executive, Glenn Barrett, said the deal would provide a platform for OrthoLite and Cirql to continue to serve customers “with the most innovative and sustainable footwear components in the world”.
