Invista Sells Advanced Textiles to Shandong Ruyi
After spending more than six months exploring strategic options for its apparel & advanced textiles business, assisted by US finance group Goldman Sachs, Invista has finally decided to sell. The US nylon producer has entered into a definitive agreement with Shandong Ruyi Investment Holding, one of China’s largest textile manufacturers. Financial terms were not disclosed.
“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,” said Invista’s chairman and CEO, Jeff Gentry.
Headquartered in Jining, Shandong province, Shandong Ruyi Investment Holding operates 13 industrial parks in China, which are said to comprise some of the largest production lines and advanced technologies in the country. The group also has operations in Germany, Italy, the UK, India, Pakistan, Japan, Australia and New Zealand.
The transaction includes Invista’s portfolio of apparel-focused fibers and brands including Lycra, Lycra HyFit, Coolmax, Thermolite, Elaspan, Supplex and Tactel, as well as Terathane polytetramethylene ether glycol (PTMEG), 1,4 butanediol (BDO) and tetrahydrofuran (THF) production.
However, Invista will retain its nylon, polyester, polyols and licensing businesses and related brands. This includes its nylon 6,6 intermediates business, the global nylon polymer and fiber portfolio, and brands such as Stainmaster and Antron carpet fibers and Cordura fabric. In addition, Invista will also keep ownership of its intellectual property rights for BDO, THF and PTMEG technologies, continuing to license them worldwide.
Completion of the deal, which is subject to customary closing conditions as well as regulatory approvals, is expected by the middle of 2018.
Gentry said Invista looked forward to intensifying its focus on the nylon value chains.