Earlier this year INVISTA announced its intention to shed the Apparel & Advanced Textiles business unit — one of four major divisions — and it finally found a buyer.
The producer of fibers and polymers reported on Oct. 28, that it has has entered into a definitive agreement with Shandong Ruyi Investment Holding to sell the business unit for an undisclosed sum in a deal expected to close in mid-2018.
The transaction includes:
- INVISTA’s portfolio of apparel-focused fibers and brands including LYCRA® fiber, LYCRA HyFit® fiber, COOLMAX® fiber, THERMOLITE® fiber and insulation, ELASPAN® fiber, SUPPLEX® fiber and TACTEL® fiber products
- TERATHANE® polytetramethylene ether glycol (PTMEG), 1,4 butanediol (BDO), and tetrahydrofuran (THF) production
- Related manufacturing assets, research and development centers, 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 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 fiber portfolio, and widely recognized brands including STAINMASTER® and ANTRON® carpet fibers 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 you can count on INVISTA to continue building on this heritage of leadership and innovation.”
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to INVISTA, and Jones Day is acting as INVISTA’s legal advisor on this transaction. J.P. Morgan is serving as exclusive financial advisor to Shandong Ruyi Investment Holding, and Latham & Watkins is acting as Shandong Ruyi Investment Holding’s legal advisor on this transaction. J.P. Morgan and Barclays are providing committed financing to affiliate(s) of Shandong Ruyi Investment Holding.