Shandong Ruyi To Buy INVISTA's Apparel And Advanced Textiles Business

Mergers & Acquisition

Shandong Ruyi To Buy INVISTA's Apparel And Advanced Textiles Business

Shandong Ruyi Investment Holding entered into a definitive agreement to acquire INVISTA's Apparel & Advanced Textiles business (A&AT), which includes the renowned, global LYCRA® brand. Shandong Ruyi Investment Holding would acquire A&AT-one of INVISTA's four major business units-in the form of stock transaction, to further solidify Ruyi's position as a global leader in the Apparel and Hygiene markets.

Included in the transaction is INVISTA A&AT's portfolio of differentiated fibres and brands including LYCRA® fibre, LYCRA HyFit® fibre, COOLMAX® fibre, THERMOLITE® fibre and insulation, ELASPAN® fibre, SUPPLEX® fibre and TACTEL® fibre; 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, commercial, operations and administrative staff-approximately 3,000 employees globally. "INVISTA's world-class assets and consumer-recognised 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-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." Completion of the agreement is subject to customary closing conditions including regulatory clearances from competition authorities. Closing is expected by mid-2018. Shandong Ruyi Investment Holding intends to maintain the unique identity of the A&AT business. The business' current vision, strategy and organisational structure would also remain in place, while benefitting from the global textile and retailing expertise of its new shareholder. Dave Trerotola, President of INVISTA A&AT, said, "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. We look forward to working together with Shandong Ruyi Investment Holding to achieve our growth objectives now and into the future."