- Vivian Hendriksz |
London - Invista has agreed to sell one of its four major business units to Shandong Ruyi Investment Holdings, namely its Apparel and Advanced Textile business (A&AT).
Shandong Ruyi, one of the largest textile manufacturers in China, is set to acquire Invista's A&AT business, which includes its global Lycra brand, through a stock transaction for an undisclosed sum. The acquisition sees Shandong Ruyi further strengthen its position as one of the leading company's in the apparel and hygiene markets.
"The Apparel business has always been a strategic and valued part of our portfolio," said Jeff Gentry, Invista chairman, and CEO. "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."
Shandong Ruyi to acquire Invista's Apparel & Advanced Textile Business
The deal, which is expected to close by mid-2018, includes Invista's portfolio of apparel focused fibers, such as Lycra, Coolmax, and Thermolite as well as Terathane. The transaction also includes all related manufacturing assets, research and development centers, and sales offices around the globe and all associated technical, commercial, operations and administrative staff (approximately 3,000 employees globally.)
"Invista’s world-class assets and consumer-recognized brands are a perfect fit for our growing portfolio of textile-related products," said 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-recognized 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."
Invista is set to retain ownership of its nylon, polyester, polyols and licensing businesses and related brands. This includes Invista’s leading nylon 6,6 intermediates business, its global nylon polymer and fiber portfolio, as well as its recognized brands such as Stainmaster, Antron and Cordura fabric. Invista is also set to retain its intellectual property rights for butanediol (BDO), tetrahydrofuran (THF) and polytetramethylene ether glycol (PTMEG) technologies, as it is set to continue to license these technologies on a global basis.
"This change in ownership is an exciting time for the Apparel & Advanced Textiles business as we look forward to continuing to develop our brands and broaden our capabilities and offerings to our customers," added Dave Trerotola, President of Invista A&AT. "We look forward to working together with Shandong Ruyi Investment Holding to achieve our growth objectives now and into the future."