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OrthoLite Acquired by Coats Group

It’s a marriage of mega proportions. OrthoLite Holdings, the world leader in insoles manufacturing and maker of biodegradable midsole material Cirql, has been acquired by Coats Group PlC for $770 million.
From Coats’ perspective, the acquisition creates a “compelling strategic fit” accelerating its strategy to create a “super tier 2” supplier for footwear components, significantly strengthening its existing business through expansion into the attractive, high-growth premium insole market. The substantial overlap in customer base, route-to-market and operational footprint provides attractive future commercial opportunities to accelerate growth through innovation and cross-selling. In addition, there are joint cost synergies of $20 million expected to be delivered by 2028 from savings in joint optimization, operational excellence, strategic procurement and support functions, and leveraging Coats’ experience of delivering synergies from footwear acquisitions.
From OrthoLite’s perspective, CEO and Founder Glenn Barrett says it’s the right thing to do for its 550-plus brand partners. “The global footwear business continues to rapidly evolve, and we feel merging with Coats builds more opportunities for us to best serve our customers,” says Barrett. “OrthoLite has always been driven to provide innovative product and supply chain solutions to the global footwear industry. Coats shares that vision and is the best fit for OrthoLite and Cirql.
“It was important for OrthoLite to find the right buyers for its business—one that would be a strategic fit, understand the footwear business, and one that shares an ongoing commitment to employees, customers, and communities,” Barrett adds. “Coats is the right fit for all those criteria and will provide opportunities for continued investments in each.”
The trade war had nothing to do with the sale, according to Barrett. Nor will the deal change his job in the near-term. It’s business as usual for OrthoLite, makers of 550 million pairs of insoles annually, and Cirql, which launched in 2022 with the aim to revolutionize midsole materials from a pollutant to a biodegradable material featuring comparable cushioning and durability qualities.
David Paja, CEO of Coats Group, says the combination of Coats and OrthoLite is a match made in heaven—two global leaders in adjacent segments of the footwear components sector with a shared vision for innovation and sustainability, and with unparalleled brands and customer relationships. “We look forward to working with Glenn Barrett and the OrthoLite team, leveraging our combined strengths to reshape the future of the footwear components industry,” he states.
The post OrthoLite Acquired by Coats Group appeared first on Footwear Plus Magazine.

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