The leading Chinese textile and apparel company Shandong Ruyi Investment Holding recently acquired Invista’s Apparel & Advanced Textiles business. Since 2016, Ruyi group has been involved in purchasing several international luxury brands including Aquascutum, Sandro, Maje and Claudie Pierlot.
The former Invista’s Apparel & Advanced Textiles business will operate as The Lycra Company, an independent subsidiary, and will continue to manufacture advanced fiber and technology solutions for the apparel and hygiene industries. The Lycra Company will start as a fully operational subsidiary of Ruyi Group, with significant operations in various countries, among others the UK and the Netherlands. The transaction also includes eight manufacturing facilities, four research and development labs, 17 offices located in 14 countries and approximately 3,000 employees.
The purchase includes a robust portfolio of the consumer and trade brands Lycra, Lycra Hyfit, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex, Tactel and Terathane.
We interviewed Dave Trerotola, CEO of The Lycra Company, about the deal.
What are the main objectives of this acquisition?
To strengthen Shandong Ruyi Investment Holding’s position as a world-class, fully integrated textile company with unprecedented global reach. Ruyi sees great value in The Lycra Company’s iconic portfolio of globally recognized branded fibers and its ability to produce game-changing innovations that have revolutionized the fashion industry. They believe our assets and capabilities are a perfect complement to their own and they are thrilled to have acquired it.
Did Ruyi Group already own any other fiber manufacturer before?
This is Ruyi’s first acquisition of a spandex fiber manufacturer. However, the Shandong Ruyi Group has been manufacturing spandex fiber for years. They have their own spandex asset in Jining, China that they still operate today and a 60kT asset under construction in Yinchuan.
Today, they own a fully integrated value chain with operations spanning from raw materials and textile processing to the design and sale of branded apparel.
As Lycra is strongly connected with different apparel segments are you planning to also step in new segments for Shandong Ruyi Investment Holding activities?
The Lycra Company’s branded fibers can be found in virtually every apparel segment as well as non-apparel categories.
What major changes in terms of closing or moving facilities, changes of management and business targets will this acquisition bring?
We don’t anticipate any major changes. The Lycra Company management team will remain in place and will continue to execute its current business strategy and operating plan.
What turnover or business aims will this change head for?
The Lycra Company is a privately held company and we do not publicly disclose business plans or sales targets.
Some rumors about The Lycra Company going public in three years were circulating of late. Can you confirm them?
Regarding recent media reports of a future Initial Public Offering (IPO), there are no immediate plans and it is too soon to speculate. We are pleased to be part of the Ruyi Group, an owner who shares our vision and commitment to creating value for customers and driving profitable growth to meet long-term objectives.