Insole maker OrthoLite, based in Amherst, Mass., will be acquired by UK-based Coats Group for $770 million in a deal anticipated to close in the fourth quarter – a move OrthoLite founder and CEO Glenn Barrett says will present an “exceptional opportunity” for its employees and outdoor industry partners.
OrthoLite founder and CEO Glenn Barrett. Photo courtesy of OrthoLite.
“OrthoLite has a team of more than 3,400 employees worldwide,” Barrett said. “Merging with Coats represents an exceptional opportunity that will create broader opportunities for our employees and add greater value for our stakeholders.”
Coats Group, with $1.5 billion in annual revenue, is a manufacturer of thread and structural components for apparel and footwear – an expertise that Barrett said will benefit OrthoLite’s more than 550 footwear brand partners.
“When you consider the combined strength of OrthoLite’s proprietary technologies and vertical global manufacturing footprint with Coats’ complementary products, technologies and manufacturing strengths, the vision and promise of our combined entities becomes clear,” Barrett said. “Additionally, Coats and OrthoLite share a strong focus and commitment on innovation and sustainability and with Cirql, our foam technology targeting the midsole market with biodegradable and fully recyclable offerings, it’s exciting to envision the many solutions we can deliver to brands in the outdoor industry.”
The deal will accelerate Coats’ plans to become a “super tier 2” supplier in footwear components by entering the premium insole market, according to WWD.
“Coats and OrthoLite will be stronger together,” Barrett said. “We have an incredible opportunity to build our combined entity into a trusted global leader in the footwear industry through our great range of unique product offerings and our shared commitment to sustainability, innovation and supply chain solutions for our customers.”
