INVISTA has entered into a definitive agreement with one of China’s largest textile manufacturers to sell its Apparel & Advanced Textiles business.
The sale of the business to Shandong Ruyi Investment Holding is set to complete in mid 2018. The purchase price is undisclosed.
The transaction will include INVISTA’s portfolio of apparel-focused fibres and brands, including LYCRA, LYCRA HyFit, COOLMAX, Thermolite, Elaspan, Supplex and Tactel.
It will also cover related manufacturing assets, research and development centres, sales offices around the globe and around 3,000 employees globally, including associated technical, operations, commercial and administrative staff.
Commenting on the move, INVISTA chairman and CEO Jeff Gentry said: “The Apparel business has always been a strategic and valued part of our portfolio.
“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.”
INVISTA will retain ownership of its nylon, polyester, polyols and licensing businesses and related brands.
“We look forward to intensifying our focus on the nylon value chain,” Gentry said. “For nearly 80 years, we’ve delivered innovations to the nylon industry, including the most advanced adiponitrile technology in the marketplace. We have talented people with decades of know-how and you can count on INVISTA to continue building on this heritage of leadership and innovation.”
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to INVISTA, and Jones Day is acting as INVISTA’s legal advisor on this transaction.