Coats Group, the company that grew out of diversified investor Guinness Peat Group, says the sale of its EMEA Crafts business to Aurelius Group will be completed tomorrow although the loss on sale won't be announced until its first-half results, due on August 3.
The British-based threadmaker announced the sale of its Europe, Middle East and Asia crafts unit for US$10 million ($14.95 million) in February.
Yesterday it described the sale as "a complex, multi-jurisdictional transaction" which had been completed "against a backdrop of increasingly poor market conditions which have affected the trading performance of EMEA Crafts".
"Accordingly, Coats has agreed to a nominal final consideration payable to Coats compared to an original consideration of US$10 million.
"An amount of cash, broadly in line with the original terms of the sale, will be retained within the business being sold, which will result in the transaction being cash negative. The precise quantum of the loss on disposal will be determined on completion and reported in the 2015 full year results," Coats said.
