Chinese textile firm Shandong Ruyi is reportedly preparing an IPO for its newly acquired Lycra business, which could raise around US$500m.
According to Bloomberg, Shandong Ruyi is working with Goldman Sachs as it explores the deal, with deliberations for the planned IPO said to be at an early stage.
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Shandong Ruyi completed its acquisition of US-based fibre producer Invista’s Apparel and Advanced Textiles business (A&AT) – including its Lycra spandex/elastane brand at the beginning of February. Japanese conglomerate Itochu Group, a business partner in Shandong Ruyi, also invested in an undisclosed stake in the business.
The new company operates as an independent subsidiary called The Lycra Company, making advanced fibre and technology solutions for the apparel and hygiene industries. As well as Lycra, the purchase includes brands such as Lycra HyFit, Lycra T400, L by Lycra, Coolmax, Thermolite, Elaspan, Supplex, Tactel, and Terathane.
The Ruyi Group focuses on a vertical operation spanning from raw materials (such as spandex) and textile processing, to the design and sale of apparel. Since 2016, the group has acquired several international luxury brands including Aquascutum, Sandro, Maje, and Claudie Pierlot.
A spokesperson for Shandong Ruyi could not be reached at the time of press.
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