The proposed transaction is subject to court approval and follows a strategic review process that commenced in October last year.
In preparation for the agreement, SRTX has filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act, with PricewaterhouseCoopers appointed as trustee.
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The filing aims to establish an orderly procedure for securing court approval of the deal. SRTX intends to seek court approval for the transaction in the coming weeks.
A competitive process led to AYK International emerging as the selected purchaser. If approved, the transaction will provide for continued support of the Sheertex brand and ongoing development of SRTX’s proprietary materials technology.
Certain assets, including the Pointe-Claire lease and specific machinery and equipment, are not part of the deal. Instead, they will be handled through the NOI proceedings.
The strategic review prompted SRTX to temporarily reduce its workforce last October to fit operational requirements at that time. Despite changes, the company has maintained service to its customers and partners throughout the process.
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By GlobalDataFollowing the acquisition, AYK International plans to retain a limited group of employees to assist in running the Sheertex business.
AYK International CEO Dan Abitan said: “We have long admired Sheertex — not only for its innovation, but for its deep commitment to its craft and its customers. We are pleased to welcome Sheertex into the AYK family, where the brand’s expertise and advanced technology will become part of our organisation as we invest in its long-term stability and growth.”
PricewaterhouseCoopers Corporate Finance acted as financial adviser to SRTX during the strategic review.
Headquartered in Montreal, Quebec, SRTX is recognised for developing the patent-pending Sheertex Rip-Resist knit using high-strength polymers.
In May last year, SRTX completed a $40m equity fundraising round led by BDC Capital (Canada), Export Development Canada, H&M Group, and Investissement Québec.
This financing supported expansion at SRTX’s Montreal manufacturing facility, with plans set out at that time to double production capacity across North America and Europe.
In September, SRTX named Sophie Boulanger as CEO. However, Boulanger’s role was short-lived due to a “personal decision.”
