Coats Group acquires OrthoLite for 770 million dollars

British manufacturing firm Coats Group has entered an agreement to acquire OrthoLite Holdings LLC for 770 million dollars. The deal intends to create “a ‘super tier 2’ supplier for footwear components”, while helping Coats expand into the “high growth insole segment”.

The transaction, which is expected to close in Q4 2025, was funded through a combination of new debt facilities with existing lenders and the proceeds of an equity placing. Coats said “compelling financial returns” are anticipated.

OrthoLite is a US company specialising in insole open-cell foam technology for footwear. Through its acquisition, Coats will also take ownership of Cirql, a newly developed proprietary foam technology OrthoLite launched earlier this year targeting the midsole market.

Coats said that OrthoLite’s offering is a “highly complementary addition” to its portfolio, aligning on consumer base, route-to-market and sustainability values, thus making it a “compelling strategic fit”. The group further sees the acquisition as an opportunity to “reinforce its position as global leader in the footwear market”.

In a statement, David Paja, Coats’ chief executive officer, said: “The combination of Coats and OrthoLite is fantastic news for both companies and for the footwear industry. It brings together two global leaders in adjacent segments of the footwear components market with a shared vision for innovation and sustainability and with unparalleled brands and customer relationships.”