Invista has entered into a definitive agreement with Shandong Ruyi Investment Holding to sell its apparel and advanced textiles (A&AT) business, one of Invista's four major business units. Completion of the agreement, which includes Lycra brand, is subject to customary closing conditions including regulatory clearances from competition authorities.
Invista will retain ownership of its nylon, polyester, polyols and licensing businesses and related brands. This includes Invista's world-leading nylon 6,6 intermediates business, its global nylon polymer and fibre portfolio, and widely recognized brands including Stainmaster, Antron carpet fibres and Cordura fabric. Invista will also retain its intellectual property rights for 1,4butanediol, tetrahydrofuran and polytetramethylene ether glycol technologies and will continue to license these technologies on a global basis.
"The apparel business has always been a strategic and valued part of our portfolio," said Jeff Gentry, Invista chairman and chief executive officer. "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," said YafuQiu, 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 organizational structure would also remain in place, while benefitting from the global textile and retailing expertise of its new shareholder.