China’s Shandong Ruyi Investment Holding is to acquire Invista’s Apparel & Advanced Textiles business for an undisclosed price, with closing expected by mid-2018 subject to customary conditions and regulatory clearances.

The transaction includes:

• Invista’s portfolio of apparel-focused fibres and brands including Lycra, Lycra HyFit, Coolmax, Thermolite, Elaspan, Supplex and Tactel.
• 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.
• All associated technical, operations, commercial and administrative staff (approximately 3,000 employees globally)

 “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.” 

“Invista’s world-class assets and consumer-recognised brands are a perfect fit for our growing portfolio of textile-related products,” added Yafu Qiu, chairman 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 portfolio of consumer-recognised brands. We also see opportunity to leverage our existing capabilities – including our spandex manufacturing assets – to further enhance A&AT’s position in the global marketplace.”

Invista will retain ownership of its nylon, polyester, polyols and licensing businesses and related brands. This includes its nylon 6.6 intermediates business, its global nylon polymer and fibre portfolio, and widely recognized brands including Stainmaster and Antron carpet fibres and Cordura fabric. Invista will also retain its intellectual property rights for 1,4 butanediol (BDO), tetrahydrofuran (THF) and polytetramethylene ether glycol (PTMEG) technologies and will continue to license these technologies on a global basis.

“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 will continue building on a heritage of leadership and innovation.”

Four years ago, Invista started up a new production line in Shanghai, China, designed to specifically produce T837 Lycra HyFit fibre in response to the growing global demand for nonwoven hygiene products. In addition, it added capacity for this product at its plant in Paulina, Brazil.

Shandong Ruyi is one of the largest textile manufacturers in China and ranks number one out of the top 500 textile and apparel companies in China. The group owns a fully-integrated value chain with operations spanning across raw materials cultivation, textiles processing, and design and sale of brands and apparel. Headquartered in Jining, Shandong, it operates 13 domestic industrial parks and boasts some of the largest production lines and advanced technologies in China. Shandong Ruyi also has a significant distribution and point of sales (POS) network that services a global customer base with close to 5,000 POS’ spread across six different continents.