Invista, a provider of chemical intermediates, polymers and fibers, said it entered a “definitive agreement” with Shandong Ruyi Investment Holding to sell its Apparel and Advanced Textiles business, which is one of four major business units for Invista, the company said.
Terms of the deal were not disclosed.
Finalization of the agreement is anticipated by mid-2018 and “subject to customary closing conditions.” The sale includes all related manufacturing assets, research and development centers and sales offices worldwide, as well as associated technical, operations, commercial and administrative staff — approximately 3,000 employees globally.
The transaction will include Invista’s portfolio of apparel-focused fibers and brands, such as Lycra fiber, Lycra HyFit fiber, Coolmax fiber, Thermolite fiber and insulation, Elaspan fiber, Supplex fiber, Tactel fiber products and a range of its chemical products. Invista will continue ownership of its Cordura fabric, nylon, polyester, polyols and licensing businesses and related brands, the company said, and its nylon 6,6 intermediates business, global nylon polymer and fiber portfolio, Stainmaster and Antron carpet fibers.
Jeff Gentry, Invista’s chairman and chief executive officer, said that “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.”
Gentry continued, “We look forward to intensifying our focus on the nylon value chain. 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.”
Yafu Qiu, the chairman of the board of Shandong Ruyi Investment Holding, said, “Invista’s world-class assets and consumer-recognized brands are a perfect fit for our growing portfolio of textile-related products. 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-recognized 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,” Qiu added.
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