US-based fibre producer Invista has entered into a definitive agreement with one of the largest textile manufacturers in China, Shandong Ruyi Investment Holding, to sell its Apparel and Advanced Textiles business (A&AT) – including its Lycra brand.
The transaction will include Invista’s portfolio of apparel-focused fibres and brands including the Lycra, Lycra HyFit, and Coolmax fibres, Thermolite fibre and insulation, Elaspan, Supplex and its Tactel fibre products.
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It also includes Invista’s Terathane polytetramethylene ether glycol (PTMEG), 1,4 butanediol (BDO), and tetrahydrofuran (THF) production; related manufacturing assets, research and development centres, and sales offices around the globe; and all associated technical, operations, commercial and administrative staff – accounting for about 3,000 employees globally.
Meanwhile, Invista will retain ownership of its nylon, polyester, polyols and licensing businesses and related brands, including its nylon 6,6 intermediates business, its global nylon polymer and fibre portfolio, Stainmaster and Antron carpet fibres, and Cordura fabric.
It will also retain its intellectual property rights for 1,4 butanediol (BDO), tetrahydrofuran (THF) and polytetramethylene ether glycol (PTMEG) technologies and will continue to license these technologies on a global basis.
“The apparel business has always been a strategic and valued part of our portfolio,” explains Invista CEO Jeff Gentry. “We engaged the market because we want this business to be owned by the company that can create the greatest value for customers, employees, and stockholders. In this case, we believe that Shandong Ruyi Investment Holding has the knowledge and capability that will enable this business to thrive the most and succeed over the long term.”
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By GlobalDataGentry adds the US fibre producer will instead intensify its focus on the nylon value chain.
Shandong Ruyi Investment Holding is one of the largest textile manufacturers in China and ranks number one out of the top 500 textile and apparel companies in the country. The group owns a fully-integrated value chain with operations spanning across raw materials cultivation, textile processing, and the design and sale of brands and apparel.
Headquartered in Jining, Shandong, it operates 13 domestic industrial parks and boasts some of the largest production lines and advanced technologies in China. It also has a significant distribution and point of sales (POS) network that services a global customer base with close to 5,000 points of sale spread across six different continents.
“Invista’s world-class assets and consumer-recognised brands are a perfect fit for our growing portfolio of textile-related products,” says Yafu Qiu, chairman of the board of Shandong Ruyi Investment Holding. “Over the decades, the Lycra brand has transformed the apparel industry, and continues to do so today. We are committed to taking this business to the next level through continued investment in innovation and the business’ portfolio of consumer-recognised brands. We also see opportunity to leverage Shandong Ruyi Investment Holding’s existing capabilities – including our spandex manufacturing assets – to further enhance A&AT’s position in the global marketplace.”
Shandong Ruyi adds it intends to maintain the “unique identity” of the A&AT business, keeping its current vision, strategy and organisational structure in place.
Completion of the agreement is subject to customary closing conditions including regulatory clearances from competition authorities, with closing expected by mid-2018. The purchase price is undisclosed.
Earlier this year Shandong Ruyi announced plans to invest US$410m opening its first facility in North America, which will spin cotton into yarn for textile use. Production should begin by mid-2018.
Shandong Ruyi to open first North America facility
