Coats Group plc has acquired Texon, the manufacturer of structural components and materials for the footwear, accessories and apparel industries.

The Uxbridge, U.K.-based thread manufacturer, said it had agreed to buy Texan for an enterprise value of U.S. $237 million and a total net cash consideration of $211 million after deducting assumed retirement liabilities and other customary adjustments.

In 2021, Texon generated revenue of $132 million and earnings before income, tax, depreciation, and amortization of $21 million. Coats Group expects the acquisition to be earnings enhancing in the first year and to generate annual synergies of around $5 million by the end of the second full year of ownership.

Coats Group added that Texon is a “complementary addition” to its existing footwear business and anticipates it will bring “attractive commercial opportunities.”

Rajiv Sharma, Coats Group chief executive, said, “The acquisition of Texon will strengthen our existing presence in the highly attractive athleisure footwear market. The business is complementary to Coats and provides attractive future commercial opportunities as we work together, leveraging our combined expertise and knowledge to succeed with our customers. We recognize and share Texon’s focus on sustainability and innovation and believe that this acquisition strengthens our ability to fulfill these shared ambitions.”