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Coats Group Announces £250 Million Capital Raise for OrthoLite Acquisition

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Coats Group Announces £250 Million Capital Raise for OrthoLite Acquisition

Elevate Your Investing Strategy:

Coats Group plc ( (GB:COA) ) has provided an announcement.

Coats Group plc has announced a proposed capital raise of approximately £250 million through an equity placing, retail offer, and director subscription. The funds will be used to partially finance the acquisition of OrthoLite Holdings LLC, a leader in premium insoles, for $770 million. This acquisition is part of Coats’ strategy to expand its footwear component business and create a ‘super tier 2′ supplier. The capital raise and acquisition are expected to enhance Coats’ market position and are supported by consultations with major shareholders, indicating confidence in the strategic move.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Spark’s Take on GB:COA Stock

According to Spark, TipRanks’ AI Analyst, GB:COA is a Outperform.

Coats Group plc’s overall stock score is driven by solid financial performance and confidence from recent corporate events. The technical indicators suggest a neutral to slightly bullish outlook, while the valuation remains attractive with a reasonable P/E ratio and a good dividend yield. However, high leverage presents a risk that requires careful management.

To see Spark’s full report on GB:COA stock, click here.

More about Coats Group plc

Coats Group plc is a leading global manufacturer in the industrial thread and footwear component industry, specializing in the production of premium insoles and other footwear components. The company focuses on strengthening its position in the high-growth premium insole segment to enhance its existing footwear business.

Average Trading Volume: 3,901,877

Technical Sentiment Signal: Buy

Current Market Cap: £1.31B

For a thorough assessment of COA stock, go to TipRanks’ Stock Analysis page.

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