Invista has entered into a definitive agreement with Shandong Ruyi Investment Holding, a Chinese textile group, to sell Invista's apparel & advanced textiles business, one of Invista's four major business units. The transaction includes well-known brands such as Lycra and Coolmax, among others, while it does not include Cordura, which is part of Invista's performance solutions business.
The financial terms of the transaction have remained undisclosed, although reports by Bloomberg suggest Shandong is paying more than $2 billion. Headquartered in the U.S., Invista is a wholly-owned subsidiary of Koch Industries. The completion of the agreement is subject to customary closing conditions, including regulatory clearances from competition authorities. Closing is expected by mid-2018.
Specifically, the transaction includes: Invista's portfolio of apparel-focused fibers and brands, notably Lycra fiber, Lycra HyFit fiber, Coolmax fiber, Thermolite fiber and insulation, Elaspan fiber, Supplex fiber and Tacter fiber products; Terathan polytetramethylene ether glycol (PTMEG), 1,4 butanediol (BDO), and tetrahydrofuran (THF) production; related manufacturing assets, research & development centers, and sales offices around the globe; and all associated technical, operations, commercial and administrative staff, which means around 3,000 employees globally.
Invista will retain ownership of its nylon, polyester, polyols and licensing businesses and related brands. These include Cordura fabric and Stainmaster and Antron carpet fibers. 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.