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British thread manufacturer Coats Group announced on Wednesday its agreement to acquire U.S.-based footwear insole maker OrthoLite for $770 million, including debt. This strategic acquisition is part of Coats’ commitment to expand its presence in the global footwear market and enhance its capabilities within high-growth, value-added segments. Coats stated that the deal is anticipated to generate $20 million in annual cost savings by 2028 through synergies in procurement, manufacturing, and operational efficiencies.
OrthoLite is a market leader, boasting a 36% share of the global open-cell foam insole segment. The company supplies over 500 million pairs of insoles annually to approximately 550 brand customers worldwide, including major names in athletic, outdoor, and casual footwear. Additionally, OrthoLite has established more than 310 co-branding agreements, underscoring its strong partnerships and brand visibility across the industry.
The acquisition is expected to be immediately accretive, with Coats projecting enhanced operating profit margins and an increase in earnings per share in the first full year following completion. This aligns with Coats’ ongoing strategy to pursue value-accretive opportunities and strengthen its global leadership in the footwear and accessories market. According to the company’s latest annual report, Coats’ footwear division reported revenue of £403 million for fiscal year 2024, reflecting robust demand and continued growth momentum in this sector.
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